Daily Review

1.  The unemployment rate is calculated by

            a.  Labor Force/Civilian Non-institutional Population

            b.  Unemployed/Labor Force

            c.  Unemployed/Employed

            d.  Change in Unemployment/Change in Labor Force

The correct answer should be "b".  Unemployment is a dynamic calculation based on the number of workers becoming separated from employment, re-entrants into employment, and unemployed workers finding work.  The current unemployment rate stands at about 9%.  The author of this blog believes that this rate will continue for a very long time.   The graph to the right is from the Congressional Budget Office.  Recession, and thus, unemployment, should continue through 2016 if you believe the forecast.