It underestimates the unemplyment rate. The Labor Force consists of two catagories, Employed and Unemployed. Assuming you know what an unemployed citizen is, then you can understand it might be frustrating when an unemployed person can not find a job. Once a month, the government (at least in the USA) asking if you are currently looking for work. If stated no, that person is no longer Unemployed, but said to be Not in the Labor Force. Because of this, the unemployment rate is underestimating, because really, this person wants a job and has become too frustrated to continue the job search.
Yes, the current unemployment rate may underestimate unemployment due to factors such as underemployment, discouraged workers who have stopped looking for jobs, and those who have left the labor force. This can result in a less accurate representation of the true extent of joblessness in the economy.
What is the national unemployment rate
The Official Unemployment rate (U-3) in US for August 2011 was 9.1.Below are the other unemployment rates in US for August 2011 :U-1 Unemployment rate : 5.4U-2 Unemployment rate : 5.3U-3 Unemployment rate : 9.1U-4 Unemployment rate : 9.7U-5 Unemployment rate : 10.6U-6 Unemployment rate : 16.2
There are a few problems with the unemployment and the economic health. The main problem is people not wanting to work.
The natural rate of unemployment, also known as the non-accelerating inflation rate of unemployment (NAIRU), is the rate of unemployment at which inflation remains stable over time. It is determined by structural factors in the economy, such as demographics, labor market institutions, and technology. It is not a fixed number and can vary over time.
The estimated unemployment rate is 8.4% in Italy
As of 2021, the unemployment rate in Fiji is around 20%.
The unemployment rate in India in 1991 was approximately 3.4%.
The Unemployment rate of Pakistan is 15.4%.
The estimated unemployment rate for Italy is 6.8% (2008).
Polynesia has the most unemployment rate.
The unemployment rate in October, 1984 was 7.3 %.