The Measurement of Unemployment

The Bureau of Labor Statistics (BLS) calculates the official U.S. unemployment statistics by conducting a monthly telephone survey of about 60,000 randomly selected adults (aged 16 or over) in the United States. This Current Population Survey is used to estimate the number of adults in the U.S. that belong in the following three categories:

· employed – people who spent most of the previous week working at a paid job.
· unemployed – people who do not have a paid job, but are looking for one. This category includes workers who are temporarily laid off and people who have found a job and are waiting for it to begin.
· not in the labor force – people who do not have a paid job and are not looking for one, such as retirees, homemakers, and full-time students.

The data collected in the Current Population Survey are used to calculate several commonly reported measures of labor market conditions. The labor force is the total number of workers in an economy, including both the employed and the unemployed. The labor force participation rate is the percentage of the adult population in the labor force. Approximately two-thirds of U.S. adults are in the labor force. The unemployment rate is the percentage of the labor force that is unemployed. It is calculated by dividing the number of unemployed adults by the size of the labor force and multiplying the result by 100 to obtain a percentage.

U.S. EMPLOYMENT DATA - MAY 2009
Employed	140,570,000
Unemployed	14,511,000
Labor Force = Employed + Unemployed	155,081,000
Not in the Labor Force	80,371,000
Adult Population = Labor Force + Not in the Labor Force	235,452,000

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Examples of Labor Data (September 2004)

To illustrate the calculation of these statistics, consider the following employment data for the U.S. economy in September 2004.[3]

ADULT POPULATION (May 2009) 235,452,000
EMPLOYED 140,570,000 (59.7% of the Population)	UNEMPLOYED 14,511,000 (9.4% of the Labor Force)	Not in the Labor Force 80,371,000
...	...	...
...	...	...
...	...	...

Adult Population
223,941,000

Employed
139,480,000

Labor Force
147,483,000

Unemployed
8,003,000


Not in the Labor Force
76,458,000

Source: Bureau of Labor Statistics. ftp://ftp.bls.gov/pub/suppl/empsit.cpseea1.txt

Labor Force = Number of Employed + Number of Unemployed

Labor Force in September 2004 = 139,480,000 + 8,003,000 = 147,483,000


Labor Force Participation Rate = [Labor Force / Adult Population] 100

Labor Force Participation Rate in September 2004 =
[(147,483,000)/(223,941,000)] 100 = 65.9%

Unemployment Rate = [Number of Unemployed / Labor Force] 100

Unemployment Rate in September 2004 =
[(8,003,000) / (147,483,000)] 100 = 5.4%


The natural rate of unemployment is the normal rate of unemployment around which the unemployment rate fluctuates. The natural rate of unemployment is currently estimated to be 5.5%. The graph and table below show how the unemployment rate changed over the last decade.

Because it is natural for there to be 5.5% unemployment in the U.S. economy, many economists consider the economy to be “fully employed” when the unemployment rate is at or below 5.5%.

Historical Unemployment Data


The U.S. unemployment rate between 1948 and 2009.

U.S. UNEMPLOYMENT RATE 2010-2016
YEAR	2010	2011	2012	2013	2014	2015	2016
Jan	9.7	9.0	-	-	-	-	-
Feb	9.7	8.9	-	-	-	-	-
Mar	9.7	8.8	-	-	-	-	-
Apr	9.8	9.0	-	-	-	-	-
May	9.6	9.1	-	-	-	-	-
Jun	9.5	9.2	-	-	-	-	-
Jul	9.5	-	-	-	-	-	-
Aug	9.6	-	-	-	-	-	-
Sep	9.6	-	-	-	-	-	-
Oct	9.7	-	-	-	-	-	-
Nov	9.8	-	-	-	-	-	-
Dec	9.4	-	-	-	-	-	-
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 2003-2009
YEAR	2003	2004	2005	2006	2007	2008	2009
Jan	5.8	5.7	5.3	4.7	4.6	5.0	7.7
Feb	5.9	5.6	5.4	4.8	4.5	4.8	8.2
Mar	5.9	5.8	5.2	4.7	4.4	5.1	8.6
Apr	6.0	5.6	5.2	4.7	4.5	5.0	8.9
May	6.1	5.6	5.1	4.6	4.4	5.4	9.4
Jun	6.3	5.6	5.0	4.6	4.6	5.5	9.5
Jul	6.2	5.5	5.0	4.7	4.6	5.8	9.4
Aug	6.1	5.4	4.9	4.7	4.6	6.1	9.7
Sep	6.1	5.4	5.0	4.5	4.7	6.2	9.8
Oct	6.0	5.5	5.0	4.4	4.7	6.6	10.1
Nov	5.8	5.4	5.0	4.5	4.7	6.9	10.0
Dec	5.7	5.4	4.9	4.4	5.0	7.4	10.0
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 1997-2003
YEAR	1997	1998	1999	2000	2001	2002	2003
Jan	5.3	4.6	4.3	4.0	4.2	5.7	5.8
Feb	5.2	4.6	4.4	4.1	4.2	5.7	5.9
Mar	5.2	4.7	4.2	4.0	4.3	5.7	5.9
Apr	5.1	4.3	4.3	3.8	4.4	5.9	6.0
May	4.9	4.4	4.2	4.0	4.3	5.8	6.1
Jun	5.0	4.5	4.3	4.0	4.5	5.8	6.3
Jul	4.9	4.5	4.3	4.0	4.6	5.8	6.2
Aug	4.8	4.5	4.2	4.1	4.9	5.7	6.1
Sep	4.9	4.6	4.2	3.9	5.0	5.7	6.1
Oct	4.7	4.5	4.1	3.9	5.3	5.7	6.0
Nov	4.6	4.4	4.1	3.9	5.5	5.9	5.8
Dec	4.7	4.4	4.0	3.9	5.7	6.0	5.7
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 1990-1996
YEAR	1990	1991	1992	1993	1994	1995	1996
Jan	5.4	6.4	7.3	7.3	6.6	5.6	5.6
Feb	5.3	6.6	7.4	7.1	6.6	5.4	5.5
Mar	5.2	6.8	7.4	7.0	6.5	5.4	5.5
Apr	5.4	6.7	7.4	7.1	6.4	5.8	5.6
May	5.4	6.9	7.6	7.1	6.1	5.6	5.6
Jun	5.2	6.9	7.8	7.0	6.1	5.6	5.3
Jul	5.5	6.8	7.7	6.9	6.1	5.7	5.5
Aug	5.7	6.9	7.6	6.8	6.0	5.7	5.1
Sep	5.9	6.9	7.6	6.7	5.9	5.6	5.2
Oct	5.9	7.0	7.3	6.8	5.8	5.5	5.2
Nov	6.2	7.0	7.4	6.6	5.6	5.6	5.4
Dec	6.3	7.3	7.4	6.5	5.5	5.6	5.4
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 1983-1989
YEAR	1983	1984	1985	1986	1987	1988	1989
Jan	10.4	8.0	7.3	6.7	6.6	5.7	5.4
Feb	10.4	7.8	7.2	7.2	6.6	5.7	5.2
Mar	10.3	7.8	7.2	7.2	6.6	5.7	5.0
Apr	10.2	7.7	7.3	7.1	6.3	5.4	5.2
May	10.1	7.4	7.2	7.2	6.3	5.6	5.2
Jun	10.1	7.2	7.4	7.2	6.2	5.4	5.3
Jul	9.4	7.5	7.4	7.0	6.1	5.4	5.2
Aug	9.5	7.5	7.1	6.9	6.0	5.6	5.2
Sep	9.2	7.3	7.1	7.0	5.9	5.4	5.3
Oct	8.8	7.4	7.1	7.0	6.0	5.4	5.3
Nov	8.5	7.2	7.0	6.9	5.8	5.3	5.4
Dec	8.3	7.3	7.0	6.6	5.7	5.3	5.4
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 1976-1982
YEAR	1976	1977	1978	1979	1980	1981	1982
Jan	7.9	7.5	6.4	5.9	6.3	7.5	8.6
Feb	7.7	7.6	6.3	5.9	6.3	7.4	8.9
Mar	7.6	7.4	6.3	5.8	6.3	7.4	9.0
Apr	7.7	7.2	6.1	5.8	6.9	7.2	9.3
May	7.4	7.0	6.0	5.6	7.5	7.5	9.4
Jun	7.6	7.2	5.9	5.7	7.6	7.5	9.6
Jul	7.8	6.9	6.2	5.7	7.8	7.2	9.8
Aug	7.8	7.0	5.9	6.0	7.7	7.4	9.8
Sep	7.6	6.8	6.0	5.9	7.5	7.6	10.1
Oct	7.7	6.8	5.8	6.0	7.5	7.9	10.4
Nov	7.8	6.8	5.9	5.9	7.5	8.3	10.8
Dec	7.8	6.4	6.0	6.0	7.2	8.5	10.8
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 1969-1975
YEAR	1969	1970	1971	1972	1973	1974	1975
Jan	3.4	3.9	5.9	5.8	4.9	5.1	8.1
Feb	3.4	4.2	5.9	5.7	5.0	5.2	8.1
Mar	3.4	4.4	6.0	5.8	4.9	5.1	8.6
Apr	3.4	4.6	5.9	5.7	5.0	5.1	8.8
May	3.4	4.8	5.9	5.7	4.9	5.1	9.0
Jun	3.5	4.9	5.9	5.7	4.9	5.4	8.8
Jul	3.5	5.0	6.0	5.6	4.8	5.5	8.6
Aug	3.5	5.1	6.1	5.6	4.8	5.5	8.4
Sep	3.7	5.4	6.0	5.5	4.8	5.9	8.4
Oct	3.7	5.5	5.8	5.6	4.6	6.0	8.4
Nov	3.5	5.9	6.0	5.3	4.8	6.6	8.3
Dec	3.5	6.1	6.0	5.2	4.9	7.2	8.2
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 1962-1968
YEAR	1962	1963	1964	1965	1966	1967	1968
Jan	5.8	5.7	5.6	4.9	4.0	3.9	3.7
Feb	5.5	5.9	5.4	5.1	3.8	3.8	3.8
Mar	5.6	5.7	5.4	4.7	3.8	3.8	3.7
Apr	5.6	5.7	5.3	4.8	3.8	3.8	3.5
May	5.5	5.9	5.1	4.6	3.9	3.8	3.5
Jun	5.5	5.6	5.2	4.6	3.8	3.9	3.7
Jul	5.4	5.6	4.9	4.4	3.8	3.8	3.7
Aug	5.7	5.4	5.0	4.4	3.8	3.8	3.5
Sep	5.6	5.5	5.1	4.3	3.7	3.8	3.4
Oct	5.4	5.5	5.1	4.2	3.7	4.0	3.4
Nov	5.7	5.7	4.8	4.1	3.6	3.9	3.4
Dec	5.5	5.5	5.0	4.0	3.8	3.8	3.4
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 1955-1961
YEAR	1955	1956	1957	1958	1959	1960	1961
Jan	4.9	4.0	4.2	5.8	6.0	5.2	6.6
Feb	4.7	3.9	3.9	6.4	5.9	4.8	6.9
Mar	4.6	4.2	3.7	6.7	5.6	5.4	6.9
Apr	4.7	4.0	3.9	7.4	5.2	5.2	7.0
May	4.3	4.3	4.1	7.4	5.1	5.1	7.1
Jun	4.2	4.3	4.3	7.3	5.0	5.4	6.9
Jul	4.0	4.4	4.2	7.5	5.1	5.5	7.0
Aug	4.2	4.1	4.1	7.4	5.2	5.6	6.6
Sep	4.1	3.9	4.4	7.1	5.5	5.5	6.7
Oct	4.3	3.9	4.5	6.7	5.7	6.1	6.5
Nov	4.2	4.3	5.1	6.2	5.8	6.1	6.1
Dec	4.2	4.2	5.2	6.2	5.3	6.6	6.0
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

U.S. UNEMPLOYMENT RATE 1948-1954
YEAR	1948	1949	1950	1951	1952	1953	1954
Jan	3.4	4.3	6.5	3.7	3.2	2.9	4.9
Feb	3.8	4.7	6.4	3.4	3.1	2.6	5.2
Mar	4.0	5.0	6.3	3.4	2.9	2.6	5.7
Apr	3.9	5.3	5.8	3.1	2.9	2.7	5.9
May	3.5	6.1	5.5	3.0	3.0	2.5	5.9
Jun	3.6	6.2	5.4	3.2	3.0	2.5	5.6
Jul	3.6	6.7	5.0	3.1	3.2	2.6	5.8
Aug	3.9	6.8	4.5	3.1	3.4	2.7	6.0
Sep	3.8	6.6	4.4	3.3	3.1	2.9	6.1
Oct	3.7	7.9	4.2	3.5	3.0	3.1	5.7
Nov	3.8	6.4	4.2	3.5	2.8	3.5	5.3
Dec	4.0	6.6	4.3	3.1	2.7	4.5	5.0
Source: Bureau of Labor Statistics, U.S. Department of Labor.
These data are seasonally adjusted in order to account for cyclical hiring differences that do not reflect changes in the overall economy.