Nonsequitur: Missing Workers (The Real Unemployment Rate)
October 13, 2014
The Economic Policy Institute proposes a new measure of employment:
“missing workers”—potential workers who, because of weak job opportunities, are neither employed nor actively seeking a job
This measure controls for retirements to include only workers who are eligible and able to work. It is a more accurate measure of those who cannot find a job.
The EPI estimates about 6.3 million “missing workers” and an actual unemployment rate of 9.6%.