The Inaccuracy of the U.S. Unemployment Rate
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The paper discusses part-time workers who qualify for unemployment benefits and explains that they are not actually unemployed; they are underemployed, and so they contribute to the skewing of the unemployment rate. Next, the paper explains how the unemployment rate does not account for discouraged workers who either fail to comply with the mandatory job search, stop filing for unemployment, or become otherwise disqualified from receiving benefits. Finally, the paper addresses how only specific military veterans receive unemployment benefits and, institutionalized and incarcerated individuals are unconventionally unemployed but are not reported. The paper concludes that the reported U.S. unemployment rate will never be able to tell the public just how many people in the country are jobless and without any source of legitimate income at any given time.
From the Paper:"The reported US unemployment rate is, at best, an inaccurate reflection of the true unemployment rate; a statistic calculated based on predetermined parameters, and only reported information. This rate does not account for those who may be unemployed for unconventional reasons, nor does it reflect information that has not been reported to the government. Every year, the data reflects nationwide information on workers who are unemployed due to company closings, layoffs, and terminations or voluntary quits (when qualified). Furthermore, the majority of this data is based on the number of workers actually filing for and receiving unemployment benefits during the fiscal year. However, the U.S> unemployment rate can easily be deemed inaccurate when taking into account the number of unemployed persons who have not filed for unemployment benefits because they either do not wish to or do not qualify to receive benefits for one reason or another (State Unemployment Insurance Benefits... n.d.).
"In very rare cases, part-time workers can file for partial unemployment. Typically, this means the individual's hours have been cut or they are subject to a partial, albeit temporary, layoff. Persons who voluntarily work part-time do not often qualify for unemployment as they are still subject to a full-time work search, and voluntarily working fewer hours is not considered actual unemployment per Department of employment security rules. Still, part-time workers who do qualify do not lend an accurate reflection of true unemployment rates because they are not actually unemployed; they are underemployed (Dratch, n.d.)."
Sample of Sources Used:
- Dratch, D. (n.d.). Side employment can reduce unemployment benefits. Retrieved August 8, 2013, from http://www.bankrate.com/finance/personal-finance/side-business-can-hurt-unemployment-benefits-1.aspx
- Matthews, C. (2012, October 16). U.S. Unemployment Rate Blind Spot: Discouraged Workers Muddy the Stats | TIME.com. Retrieved August 8, 2013, from http://business.time.com/2012/10/16/the-unemployment-report-wasnt-rigged-but-its-not-accurate-either/
- State Unemployment Insurance Benefits, Employment & Training Administration (ETA) - U.S. Department of Labor. (n.d.). Retrieved August 8, 2013, from http://www.workforcesecurity.doleta.gov/unemploy/uifactsheet.asp
- Veteran Unemployment Compensation | Military.com. (n.d.). Retrieved August 8, 2013, from http://www.military.com/benefits/veteran-benefits/veteran-unemployment-compensation.html
Cite this Persuasive Essay:
The Inaccuracy of the U.S. Unemployment Rate (2013, August 22) Retrieved May 19, 2022, from https://www.academon.com/persuasive-essay/the-inaccuracy-of-the-us-unemployment-rate-153664/
"The Inaccuracy of the U.S. Unemployment Rate" 22 August 2013. Web. 19 May. 2022. <https://www.academon.com/persuasive-essay/the-inaccuracy-of-the-us-unemployment-rate-153664/>