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<p>[QUOTE=&quot;fatima, post: 1396698, member: 22143&quot;]It&#039;s not.&nbsp; </p><p><br /></p><p>Unemployment is difference between the number of employed against the stated size of the labor force.&nbsp;&nbsp; What is never reported with Unemployment is the size of the labor force nor the number of employed.&nbsp; The unemployment rate is the simply unemployment divided by the size of the labor force X 100.&nbsp;&nbsp; </p><p><br /></p><p>So to put it in very simple terms.&nbsp;&nbsp; If the labor force is 10 and 6 are employed.&nbsp; Unemployment = 4 and the rate is 40%.&nbsp; So lets reduce the labor force by 2 people and layoff another.&nbsp; &nbsp; This means labor force is 8 and 5 are employed.&nbsp; Unemployment = 3 and the rate is now 37.5%.&nbsp;&nbsp; Congratulations.&nbsp; You just reduced the unemployment rate by 3.5% and the economy is getting better declares the media.&nbsp;&nbsp; Never mind that only 5 have jobs now.&nbsp; &nbsp; </p><p><br /></p><p>Between 2008 &amp; 2012 the government reduced the size of the labor force by ~6,500,000 people (less than 4 years).&nbsp; How can this be in an economy that is supposed to be growing and getting better?&nbsp; Population increases alone says the labor force should be growing just to keep its head above water.&nbsp;&nbsp; It&#039;s done simply to make the rate look better because it makes people feel good.&nbsp;&nbsp; The math doesn&#039;t lie.&nbsp; If you are interested you can check it yourself.&nbsp;&nbsp; </p><p><br /></p><p>BTW the employment rate is calcuated as follows.&nbsp;&nbsp; They do phone interviews and other surveys to between 1000 - 10000 jobs.&nbsp; The rest are calculated by the birth/death rate.&nbsp; That is they assume that if so many babies are born and so many people will are stuck in the ground, the difference will automatically create X number of jobs based on their formulas which they change each month.&nbsp; Then if this wasn&#039;t enough, they also seasonally adjust using non-concrete factors such as weather, schools, etc.</p><p><br /></p><p>In a normal world, where interest rates were not being held below inflation rates, housing prices would be collapsing.[/QUOTE]</p><p><br /></p>

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