How accurate is the unemployment rate? As it goes up and down each month it causes a lot of people, particularly those looking for work, quite a bit of stress. Do you ever wonder if it can really be trusted? Or, whether it matters for you and your job security? Let's look at why and why not.
The unemployment rate is a complicated calculation, and it gets more complicated during times of economic turmoil. This is because the Bureau of Labor Statistics, which calculates the unemployment rate, makes certain assumptions about the number of working-age people in the economy during certain seasons of the year and creates a "seasonally adjusted" number. That's the one you hear about in the news.