Unemployment is typically measured through national household surveys or labor force surveys, which are conducted by the Bureau of Labor Statistics.
The surveys ask a sample of individuals questions about their employment status, work hours, and earnings. Based on the responses, the survey calculates various measures of unemployment, including the overall unemployment rate and rates for different demographic groups.
The most widely used measure of unemployment is the unemployment rate, which is defined as the percentage of the labor force that is unemployed but actively seeking employment and willing to work. The labor force consists of all individuals who are employed or unemployed but actively seeking employment.
Those who are not in the labor force, such as individuals who are retired, disabled, or discouraged from seeking work, are not counted as unemployed. This is where many people say the calculation falls short and does not tell the whole story about the state of employment in the US.
There are various types of unemployment, including frictional unemployment, structural unemployment, and cyclical unemployment, each of which is related to different underlying economic factors.
In our next several posts, we’ll talk about the different types of unemployment and why they are relevant to today’s economy.
In the meantime, if you want to NEVER worry about being unemployed again, consider training to become a real estate investor! Real estate investment can be a hedge against economic downturns, and you may not need to work a full time job at all!
You can begin your real estate investment education TODAY with real estate coach, mentor and attorney Brian Gormley. Brian created the Real Estate Masterclass to jump start your training. It’s available on demand and you work at your own pace.