'Total unemployment' declines to 16 percent(Read article summary)
Traditional unemployment rate declined to 9 percent in February
Todayâ€™s Employment Situation report showed that in February â€śtotal unemploymentâ€ť including all marginally attached workers declined to 15.9% while the traditionally reported unemployment rate declined to 8.9%.
The traditional unemployment rate is calculated from the monthly household survey results using a fairly explicit definition of â€śunemployedâ€ť (essentially unemployed and currently looking for full time employment) leaving many workers to be considered effectively â€śon the marginâ€ť either employed in part time work when full time is preferred or simply unemployed and no longer looking for work.
The Bureau of Labor Statistics considers â€śmarginally attachedâ€ť workers (including discouraged workers) and persons who have settled for part time employment to be â€śunderutilizedâ€ť labor.
The broadest view of unemployment would include both traditionally unemployed workers and all other underutilized workers.
To calculate the â€śtotalâ€ť rate of unemployment we would simply use this larger group rather than the smaller and more restrictive â€śunemployedâ€ť group used in the traditional unemployment rate calculation.
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