Unemployment rate drops to 7.8 percent(Read article summary)
Total unemployment went flat at 14.7 percent in September, while the traditionally reported unemployment rate declined to 7.8 percent.
Todayâ€™sÂ Employment Situation reportÂ showed that in September â€śtotal unemploymentâ€ť including all marginally attached workers went flat at 14.7% while the traditionally reported unemployment rate declined to 7.8%.
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.