A simple way to explain the unemployment stats

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Posted by Garrett O'Brien+ on 28-Feb-2012 in economics, featured post, ramblings | 0 comments

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Been looking for a simple way to explain the unemployment stats, how the “good news” of the past few weeks are really misleading, and providing those that believe them to be good news much like the fool’s gold that panhandlers find when digging for gold.

This synopsis is with much thanks to Frank Link, VP Client Services at First Sun Consulting, LLC – Outplacement Services. If you are not familiar with Abbot & Costello, and you love classic comedy, then you need to watch some of their clips on YouTube…

COSTELLO: I want to talk about the unemployment rate in America .

ABBOTT: Good Subject. Terrible Times. It’s 8.3%.

C: That many people are out of work?

A: No, that’s 16%.

C: You just said 8.3%.

A: 8.3% Unemployed.

C: Right 8.3% out of work.

A: No, that’s 16%.

C: Okay, so it’s 16% unemployed.

A: No, that’s 8.3%…

C: WAIT A MINUTE. Is it 8.3% or 16%?

A: 8.3% are unemployed. 16% are out of work.

C: IF you are out of work you are unemployed.

A: No, you can’t count the “Out of Work” as the unemployed. You have to look for work to be unemployed.

C: BUT THEY ARE OUT OF WORK!!!

A: No, you miss my point.

C: What point?

A: Someone who doesn’t look for work, can’t be counted with those who look for work. It wouldn’t be fair.

C: To who?

A: To Obama’s re-election campaign.

C: But they are ALL out of work.

A: No, the unemployed are actively looking for work… Those who are out of work stopped looking. They gave up. And, if you give up, you are no longer in the ranks of the unemployed.

C: So if you’re off the unemployment rolls, that would count as less unemployment?

A: Unemployment would go down. Absolutely!

C: The unemployment just goes down because you don’t look for work?

A: Absolutely it goes down. That’s how you get to 8.3%. Otherwise, it would be 16%. You don’t want to read about 16% unemployment do ya?

C: That would be frightening.

A: Absolutely.

C: Wait, I got a question for you. That means they’re two ways to bring down the unemployment number?

A: Two ways is correct.

C: Unemployment can go down if someone gets a job?

A: Correct.

C: And unemployment can also go down if you stop looking for a job?

A: Bingo.

C: So there are two ways to bring unemployment down, and the easier of the two is to just stop looking for work.

A: Now you’re thinking like an economist.

C: I don’t even know what the heck I just said!

And now you know why the unemployment figures are improving!

Here’s Abbot and Costello’s best gig, enjoy…

And here’s another video for your next coffee break

Garrett O’Brien

With 20+ years in roles as a client executive sponsor, project management, as well as functional / technical lead, Garrett is sought for his expertise in the USA, Europe, and Brazil.

He has an extensive background in implementing multi-product, multi-line HRIS environments that provides a smoother transition from legacy to new systems.

Garrett’s previous clients include ADP, Case New Holland, Cushman & Wakefield, Honeywell International, Lubrizol, MAHLE, Sodexho USA, and many others ranging from SMB’s to the Fortune 50.

Currently, Garrett works from his home office near São Paulo, Brazil as the publisher and editor for The HRIS World publications. Also, he contributes articles for their various blogs as well as provides guest posts to several IT, Cloud, and HRIS blogs.

Garrett’s current roles involve…

• Publisher, writer, and owner of 4 leading HRIS system and career blogs which are read in 50+ countries

• HR.com Advisory Board for the ERP/HRIS Community

• CEO for CGServices USA — focusing on multi-provider, multi-line system for HRIS systems

• Registered partner with Microsoft, providing the latest developments on the newest technologies from Microsoft

• Council and Education Member of Gerson Lehrman Group Council, which helps institutions of the world leaders meet, engage and manage experts across a wide range of sectors and disciplines.

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