EconoMeter panelists look back at 2012
Roger Showley, U-T SAN DIEGO
Friday, December 28, 2012
Kelly Cunningham, National University System
Answer: 8.5 percent unemployment rate
Unemployment rate is a function of both residents employed and those seeking employment. Individuals must actively look for work to be counted as unemployed. Otherwise they drop out of the labor force and are no longer considered as unemployed. Labor force participation, the percentage of working-age population seeking employment, has fallen to the lowest ratio in more than 30 years. As employment increased in 2012, I anticipated participation rates would increase as many would be encouraged to actively begin looking for work again. The labor force denominator did not increase, however, and unemployment rates decreased more than expected.