The BLS U.3 unemployment rate remained unchanged in December (as reported today) at a rounded 3.5%.
The Labor Force Participation rate remained unchanged December at 63.2%.
The Employment/Population Ratio remained unchanged at 61%.
The contribution of these two factors to the Unemployment Rate is shown in the chart below.
The relationship between the three measures is as follows:
UR = (LR – ER) / LR
Where LR is the Labor Force Participation Rate, and ER is the Employment Ratio.
Note how a decrease in the participation rate on its own, reduces the unemployment rate: The number of available workers drops, and thus there are relatively fewer unemployed – even in the absence of job growth. This is what has happened in the recovery since the “Great Recession”.
Moved PermanentlyThe document has moved here.
Apache Server at explistats.com Port 80