Unemployment Rate

There is so much “financial media” hype and angst on small moves in the unemployment rate that you really must be careful to not get caught up in the “noise” …

I saw this graphic, and it made me ponder a number of items:

• What is the “participation rate” and why is it important?
• Working age unemployables?
• Who counts as unemployed?
  • In the U.S., an unemployment rate of around 5% or lower indicates full employment, as it allows for some frictional and structural unemployment while minimizing inflation. This level suggests that most individuals who want to work can find employment.
  • Other searches said the U.S. unemployment rate that is often considered indicative of full employment in the 4% to 5.5% range.
• The percentage of people under age 65 who are not in the labor force also varies:
  • Group                                     Not in Labor Force
  • People with Disabilities 27,010,000
  • People without Disabilities 75,129,000
• Approximately 35% of prime-age adults not looking for work cite disability or serious illness as the main reason for not being employed.

Asking for a friend: How many of that 35% are not looking for work because they have scammed the safety net system of taxpayer funded benefits?

If you got this far, pull up a Red State Vs Blue State map side by side. Any similarities?