Government Understating Unemployment Rate

February 10, 2006 – A new report from the Center for Economic and Policy Research says the U.S.’s unemployment rate could be as much as 1.4 percentage points higher than government statistics show.

This translates into a 6.1 percent unemployment rate and 3 million fewer people working than government numbers indicate.

The report says the Current Population Survey from the U.S. Census Bureau for the Labor Department greatly undercounts the number of unemployed African Americans and Latinos and overstates the unemployment rate by 1.4 percent.

Read Missing Inaction: Evidence of Undercounting of Non-Workers in the Current Population Survey. 

http://www.cepr.net/publications/undercounting_cps_2006_01.pdf