How and why the official unemployment rate (measured by the BLS) might understat

Question

How and why the official unemployment rate (measured by the BLS) might understate the true level of joblessness in this country?

How and why the official unemployment rate (measured by the BLS) might overstate the true level of joblessness in this country?

Given the factors that could cause the level of joblessness to be overstated or understated, do you think it more likely that the official measure paints "too optimistic" a picture or "too pessimistic" a picture of the overall employment situation in the U.S.?

Explanation / Answer

                The official unemployment rate is estimated and reported monthly by the Bureau of Labor Statistics(BLS) of the U.S labor department using data obtaining from the current population survey.BLS estimating the employment, unemployment and labour force status of over 20 million people each month,they do a commandable job.The imperfection of the unemployment rate fall in to two catogories:-One that suggests the true unemployment of labor resourses is likely greater than the official un employment rate.Two item that shows in the understaed catogory are discouraged workers and part time workers.Two items that shows up in the overstated catogory are unreported legal employment and unreported legal unemployment.

                                      The un employment rate declined by 0.3% point to 4.7% in may, and non plan play roll employment changed little.Employment increased in health care ,mining continued to lose job, and employment in information decreased due to a strike.

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