Monday, June 8, 2020

unemployment undercount - Coronavirus Updates: Millions of lives saved - btbirkett@gmail.com - Gmail

Coronavirus Updates: Millions of lives saved - btbirkett@gmail.com - Gmail



We wrote on Friday about May's surprisingly strong and unexpected jobs report, which saw unemployment fall for the first time since the crisis began. That's still true, but hours later came a big caveat: Due to a “misclassification error,” the government has been significantly underestimating the jobless rate since March. The corrected rate for April was 5 percentage points higher than originally reported: a whopping 19.7 percent, which fell last month to 16.3, still much higher than 13.3 percent jobless rate that led Friday's headlines. This story explains how the government botched the count.

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