What does it mean to be unemployed?

1 comment October 26th, 2007

Once a month, I write a story reporting the local unemployment rate for the previous month. And almost as often I get a call from a reader who disputes the percentage of jobless workers reported by the Illinois Department of Employment Security.

Some people believe that the rate comes from the number of people filing unemployment claims. But that number’s usefulness would be limited because eventually those benefits run out, even if the recipient is still not working.

But the local number is actually gained from a national survey of about 60,000 people by the Census Bureau. Every month, the bureau conducts interviews with people in this sample group. They’re asked if they’re working (employed), not working and looking for a job (unemployed) or not working and not looking for a job (not in the labor force). They’re also asked about everyone else in their household who is over 16 years old.

The bureau builds continuity into this sample so that respondents stay in it for several months before they’re removed.

The rate for the Rockford region is determined by algorithms that factor in the particulars of the local job market, such as the Rock River Valley’s heavy reliance on manufacturing employment, and weight the national data based on local demographics, such as ethnic identity.

For a full explanation of the unemployment rate from the federal agency that determines it, visit this site.