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Q. How would you improve upon the way the Bureau of Labor Statistics computes the unemployment rate?
The Bureau of Labor Statistics (BLS) defines people in the labor force as people 16 and over who are not employed and have looked for work in 4 weeks. The rest are either employed (working for money) or "not in the labor force". I think the biggest issue with the "unemployment" figures is that the people "not in the labor force".
Coming out of the recession, many people were discouraged and didn't look for work for well beyond 4 weeks after their unemployment benefits ran out and should still be considered "unemployed". Students who don't work and never have worked should not be considered in the "unemployed" figures. People who are on public assistance and able to work should also be considered in "unemployed". I think then we would get an more accurate picture of those who are able to work but cannot find employment.
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