Not Steve Jobs. The other important Jobs.

What is the Jobs Report? 

The jobs report is a measure of unemployment in the country. It goes by many names including: The BLS Survey, The Employment Report, The Jobs Number, Non-Farm Payrolls.

Is the Jobs Number Important?

Yes. There is no question- the unemployment rate in the United States is a very big deal.

The rate moves markets. It drives policy in Washington. And small changes in the rate can win or lose elections. Heavy stuff.

Why Does It Have Such an Effect on Politics?

Politicians point to this number as a symbol of how well (or not well) they have led the country. The Federal Reserve also must maintain a focus on keeping employment high. For more on this read: What is a Dual Mandate?

How Accurate is the Number?

It leaves something to be desired. While it is a good headline measure of economic health- it’s complicated, somewhat flawed and potentially misleading. And… let’s face it- it’s only understood by a few.

Let’s join the few.

Is Unemployment as Bad as it Looks?

Well, it’s actually worse…if you count everybody.

Hmm. Who are the People Tallying the Numbers?

The Bureau of Labor Statistics (B.L.S.) is the team that calculates the official U.S. unemployment rate.

What is their definition of unemployed? Those who are actively seeking jobs but cannot find work.

Sounds reasonable. But that does not include everyone? No.

Who does Unemployment Calculations Miss?

It does not count three key groups of people:

1)  Underemployed- People who either don’t work as much as they used to (their hours have been cut short). Or people whose skill set is under-used (you used to be a senior vice president and now you need to accept a junior position).

2)  Marginally attached- People who are out of a job and looking– but haven’t been looking in the 4 weeks leading up to the survey.

3)  Discouraged workers- People who are out of a job, but have just given up searching for the past 12 months as they believe there is nothing out there.