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It's still relevant, though, as a rough measure of employee leverage vs employer leverage. Periods with low unemployment tend to see rising wages and benefits,
by ericd 8y ago
It's still relevant, though, as a rough measure of employee leverage vs employer leverage. Periods with low unemployment tend to see rising wages and benefits, high unemployment, stagnant or lowering.
- TeMPOraL 8y agoIsn't Labour Force Participation Rate a better indicator? Plenty of people opt-out of the job market by going on e.g. disability benefits, getting financial support from family and/or working extra "on the black" (without any trace for tax authorities).
- ericd 8y agoOf employee leverage (and hence wage growth)? I don't think so, because those employees who opt out aren't competing for jobs with those other employees. I'm not an economist, though. It might be a better indicator of "how well is the economy serving the needs of the people", depending on what you value.
- isoskeles 8y agoIt provides no more accurate of a view IMO, as it lumps together both groups of (a) people who don’t have jobs and need them and (b) people who don’t have jobs and don’t need them. I prefer looking at that figure more than “unemployment” rate, but it overcorrects on the pessimistic side. Maybe that’s why some of us like it.