tag:blogger.com,1999:blog-4395214934672260953.post884540520389340732..comments2023-11-21T00:19:15.151-08:00Comments on Corrections: Page One: Loss of Jobless Benefits Could Lower Unemployment RateCorrections: Page Onehttp://www.blogger.com/profile/07722760575330998692noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4395214934672260953.post-33455124562089395212010-07-16T18:19:34.670-07:002010-07-16T18:19:34.670-07:00It seems that the logic of the argument really is ...It seems that the logic of the argument really is facilitated by thinking in terms of a segmentation of the unemployed population. (1) Some people experience extreme distress even with unemployment compensation and are impelled to take the available job ASAP. (2) Some people are sustained by unemployment compensation at an acceptable level and are only impelled to take the available job when the unemployment compensation runs out. For these second group the presence of the unemployment compensation facilitates staying out of the workforce longer to search for an optimal job and in that case does increase the friction in the workforce. (3) Some people have assets or support systems allowing them to continue to remain more "picky" regarding work opportunities so that when compensation runs out they choose to remain unemployed - technically decreasing the unemployment rate but still depriving the economy of the work they would have done had they chosen to work at the available salary and role. Whenever conditions perk up they will return to the job seeking activities and incrementally raise the unemployment rate. Perhaps for this third group it would be more useful to focus on the total employment as a percent of the population. For example, in June while the "unemployment rate" declined, the total nonfarm employment actually dropped - hence the truth of the matter is that fewer people were actually working. Given that the population did not decrease in June, focus on the employment rate gives a better reflection of the truth of the current Obama stagnation.student1776noreply@blogger.com