I'd bet that this is based on the number of people not claiming unemployment checks. Also, when companies merge (Chevron/Texaco) some people are given a golden parachute and never return to the workforce. This happened to my wife. So she is "unemployed" and really never plans to go back.
In government-speak, that simply means that your benefits have run out.
I fit into that category, and yes, I have "given up" actively seeking work by sending out resumes and knocking on doors. During the six months that I was receiving benefits, I visited just about every business establishment in four counties and even went to another state to apply for a couple of things.
I have my resume on Monster.com and FlipDog.com, and view the available jobs several times per week. There ain't any. In this part of the country, there just is no work to be had except at Mickey D's or doing day labor.
No, we don't stop eating. We do odd jobs, and we have wives who support us.