Unemployment rate drops to 7.7 percent(Read article summary)
Total unemployment, including all marginally attached workers, declined slightly to 14.4 percent in November, while the traditionally reported unemployment rate also declined to 7.7 percent.
Todayâ€™sÂ Employment Situation reportÂ showed that in November â€śtotal unemploymentâ€ť including all marginally attached workers declined slightly to 14.4% while the traditionally reported unemployment rate also declined to 7.7%.
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.