The newest Employment report showed that total unemployment, including all marginally dependent workers, remained the same at 8.6% in July, while the traditionally reported unemployment rate fell to 4.3%.
The traditional unemployment rate is calculated from the monthly household survey results using a rather explicit definition of “unemployed” (essentially unemployed and currently looking for full-time employment), so that many workers are effectively classified as “marginalized” either part-time if full-time is preferred or is just unemployed and no longer looking for work.
The Bureau of Labor Statistics considers “marginally bound” workers (including discouraged workers) and those who choose to work part-time as “underutilized” workers.
The most general view of unemployment would include traditionally unemployed workers as well as any other underemployed worker.
To calculate the overall unemployment rate, we simply use this larger group and not the smaller and more restrictive unemployment group that is used in the traditional unemployment rate calculation.
Note: We are not the author of this content. For the Authentic and complete version,
Check its Original Source