U.S had released it's latest unemployment rate at 7.8%.For the past 44 months,this is the first time the figure had reached below 8%.

Though the numbers look nice ,there is a flaw in the caculation.There are 2 main areas to take note when interpretating the unemployment rate.
First,we look at how U.S unemployment rate is caculated.

                        Number of unemployed & had been actively looking for jobs
---------------------------------------------------------------------------------------------------------x 100
Total Labour force(employed & unemployed who had been actively looking for jobs)


1)The figure does not include the number of unemployed people who give up finding jobs after 4 weeks,resulted them to left the labour force thus it will show a lower % in unemployment rate.

2)The figure does not include the number of ppl who are unemployed and are not actively looking for jobs for the past 4 weeks who enter into the labour force.

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