An article in today’s Detroit Free Press confirms what many people on the right have been pointing out for years. What we call “the unemployment rate” is statistically misleading, for it includes only the “acute” phase of unemployed workers who are actively looking for work while drawing benefits, while omitting the large — and growing — number of people who become chronically unemployed.
Michigan’s unemployed stop seeking work, unemployment rate drops
Michigan enjoyed a big drop in its unemployment rate in November but for the wrong reasons.
The jobless rate declined four-tenths of a percentage point to 12.4% with little increase in new jobs. “Instead, the jobless rate drop was primarily due to fewer state residents in the labor force seeking jobs,” said Rick Waclawek, director of the Department of Energy, Labor & Economic Growth’s Bureau of Labor Market Information and Strategic Initiatives.
Which means that the longer people are out of work, the less “unemployment” there is.
Even though Michigan is not yet adding significant new jobs, the state’s jobless rate in November was two full percentage points below the November 2009 rate of 14.4%
But hey, the numbers are down!
Neat trick, especially for those who want to claim credit for lowering the unemployment rate.
Reminds me of what Mark Twain said (and what Disraeli should have said) about “lies, damn lies, and statistics.”
Comments
One response to “Fight unemployment! Simply stop looking for work!”
Best book I ever had to read in college was “How to Lie with Statistics” by Darrell Huff. Written over half a century ago, still in print, and still relevant. I recommend it to all who believe in charts, graphs, percentages and averages.