Tuesday, April 18, 2006

About About

Apparently About.com is not a reliable source. You can check this link to see if they have corrected the error, but the following is exactly what I cut and pasted from the linked page:

“The unemployment statistics and national unemployment rate do not include workers whose unemployment compensation benefits have expired or those who have given up looking for a job.”

...and later on:

“The unemployment statistics don't including people no longer collecting unemployment benefits or those who have given up looking for work.”

Everyone who has studied labor economics or Bureau of Labor Statistics methodology knows that the part about unemployment benefits is wrong. The unemployment rate does not depend on who is getting benefits. The unemployment rate comes from the Current Population Survey, and workers whose unemployment compensation benefits have expired are still counted as long as they meet the BLS definition of “unemployed”: “Persons are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work.” (You can dig deeper on the Web site to find a more precise definition and description of the methodology, but this is the gist of it.)

It’s important that many people have given up looking for jobs, so they are not counted as unemployed (and also not receiving benefits). Also, many whose benefits have expired have taken part-time jobs and therefore are also not counted as unemployed. And many people are still looking for jobs but not “actively”, and those people are also not counted. And many may be looking actively but have made other commitments that prevent them from starting immediately, and those also are not counted. But it has nothing directly to do with whether you receive unemployment benefits.

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