Every month the US Bureau of Labor Statistic (BLS) announces the value of unemployment rate for the previous month. The rate is a key measurement of how the economy is doing, the announcement is widely watched and if the unemployment rate is different from what the financial market expects, there will be large movement in those markets. Therefore, it is important to know how the Bureau of Labor Statistic works with the unemployment rate.
Measuring Unemployment
There are data of unemployment rates released each month by the BLS, it is based on a survey of 60,000 households. Each household is given a series of questions concerning the work activity in the house hold of member 16 and older in the household. If the person in the house has worked 1 hour or more as a paid employee of any sort, from a company or his or her own business the person is classified employed. Also a household member is counted as employed if the person held a job from which he or she was temporarily absent because of illness, bad weather, vacation, labor- management disputes, …show more content…
Since, full employment has been an important target for the federal …show more content…
Structural unemployment is the portion of unemployment that is as a result of changes in the structure of the economy that result in a significant loss of jobs in certain industries. Natural Rate of Unemployment is the rate that occurs as a normal part of the functioning of the economy, sometimes taken as the sum of the frictional unemployment rate and the structural unemployment rate. Cyclical Unemployment is above frictional plus structural
Measuring Unemployment
There are data of unemployment rates released each month by the BLS, it is based on a survey of 60,000 households. Each household is given a series of questions concerning the work activity in the house hold of member 16 and older in the household. If the person in the house has worked 1 hour or more as a paid employee of any sort, from a company or his or her own business the person is classified employed. Also a household member is counted as employed if the person held a job from which he or she was temporarily absent because of illness, bad weather, vacation, labor- management disputes, …show more content…
Since, full employment has been an important target for the federal …show more content…
Structural unemployment is the portion of unemployment that is as a result of changes in the structure of the economy that result in a significant loss of jobs in certain industries. Natural Rate of Unemployment is the rate that occurs as a normal part of the functioning of the economy, sometimes taken as the sum of the frictional unemployment rate and the structural unemployment rate. Cyclical Unemployment is above frictional plus structural