What is one problem with the U3 - unemployment rate? Which another metric could we look...

What is one problem with the U3 - unemployment rate? Which another metric could we look at instead?

In the most recent jobs report; What is the U3 unemployment rate? How many jobs were created? What was the average wage?

Expert Solution

Problem with the U3-Unemployment rate- U3 or official unemployment rate does not count discouraged workers , marginally attached workers, does not differentiate between part time and full time workers, U3-official unemployment also does not address the issue of underemployed and does not capture long term unemployment rate .

U6- It is the another metric which we can look for instead of U3 since U6 or real unemployment rate does consider marginally attached workers including discouraged workers, underemployed as well as unemployed and is published on monthly basis along with the unemployment rate and other four measures of unemployment.

U3- As per ILO U3 is the official unemployment rate which considers the people who are jobless and have actively looked for the jobs within past four weeks.

US created 250000 new jobs in October , 2018 and average of 207000 new jobs in a month in 2018

Average wage rate: $61372 per year in 2017

Rahul Sunny answered 2 years ago

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