What is a true unemployment rate?

Answer 1

I assume you are referring to the fact that the unemployment rate reported by the government is the amount of people who are looking for jobs but unable to find them and suggesting that the "real" unemployment rate is how many people actually are not working. There are actually a few different measures for this, which are displayed neatly in a few graphs on the link I'm attaching. No one can say what the "real" unemployment rate is, mainly because of the way the unemployment rate is really calculated. The unemployment rate is the percentage of the American people who are drawing unemployment insurance. It doesn't include people whose unemployment insurance has run out, people who have removed themselves voluntarily from the employment pool (stay at home mothers, people living on trust funds, etc.) and people who haven't ever been employed. A rough estimate is to take the "unemployment rate" and double it.

Answer 2

The true unemployment rate refers to the actual number or percentage of people who are actively looking for work but are unable to find employment. It may differ from official statistics if certain groups like discouraged workers or underemployed individuals are not included in the official calculations.

Answer 3

Normally in the U.S. the unemployment rate is measured by the number of people filing for and receiving unemployment compensation. However, many failed to find employment before their unemployment compensation expired, or they had to settle for part-time employment or a job that pays less than that for which they are trained and experienced. The determination of the true unemployment rate involves the endeavor to count those people as well.