Unemployment According to the Bureau of Labor Statistics

Many people are not aware about what really makes a person unemployed based on economic or statistical terms. What many people do not know is that certain terminologies are used by the Department of Labor whenever they conduct monthly surveys to measure the unemployment rate of the country. The unemployment rate is an important indicator of the current economic trends of the country. It can help assess the development of businesses and which sectors (or industries) have created large or smaller demands for workforce.

In the measurement of unemployment, the following terms are taken into account with their corresponding definitions.

1. Unemployed. This refers to people who have lost their jobs without their fault. Some of the reasons may be downsizing, company bankruptcy, retrenchment, layoffs, and redundancies. Therefore, to be eligible as unemployed, a person must have no job but is actively seeking for a job in the last four weeks and available for work.

2. Labor Force. This is the total number of employed and unemployed people. By employed we mean by people who have jobs. Unemployed refers to the description above.

3. Discouraged Workers. This is the Bureau of Labor Statistics term for people who left the labor force to retire, go to school, have disabilities that keep them from working, getting married, having children or attending to other family responsibilities. This is also referred to people who do not look for work or are discouraged from looking. They are not included in the measurement of unemployment report, but are still highlighted separately in the Employment Report.

4. Unemployment Rate. The calculation to get the unemployment is by dividing the number of the unemployed with the total number of the labor force.

Unemployment is basically caused by the entire economy slowing down as manifested by businesses cutting on costs which will include savings on salary expenses.