why is the unemployment rate so low ? there is something flawed in one or the other ... I think people have been saying this for a while ...
The unemployment rate seems to lag (for whatever reason) the number of jobs created, by a couple of months.
It increased, for instance, back in the month where there were 300,000 jobs "created".
BTW, I've read where the real rate is around 9% if you count it the same way they counted in the 60s. They changed the way it was figured in the 90s.
why is the unemployment rate so low ? there is something flawed in one or the other ... I think people have been saying this for a while ...
The UE Rate is calculated based on the "Household" Survey, which asks individual households if people in them have jobs, which is then compared to the labor pool (people working plus people that are actively seeking work) to determine the UE rate. The "New Jobs Created" data is based on the "Establishment" Survey, which asks businesses how many people it employs, as compared to the previous month. The self-employed, small businesses and new start-ups will never be caught by the "Establishment" Survey, only in the "Household" Survey. IMO, the fact that so few "new" jobs are appearing in the "Esatblishment" Survey may mean that the economy is strong enough to support new business formation at a rate greater than that expected by the so-called experts.
Because every month, large numbers of people fall off the charts due to their benefits running out. They are no longer counted.