Calculating unemployment

The U.S. unemployment rate reached 8.1 percent in February. This is clearly bad news, but what if the real number were nearly twice that much?

In fact, it is, depending on what measures are used to calculate unemployment. According to the U.S. Bureau of Labor Statistics, the most comprehensive set of statistical measures available put the actual unemployment rate at 14.8 percent.

HF925, sponsored by House Majority Leader Tony Sertich (DFL-Chisholm), would ensure that the state’s official unemployment estimates are always calculated using the more comprehensive method.

The new calculations would take into account people who are unemployed and no longer actively seeking work because of impediments like transportation issues or a lack of child care. It would also factor in those who are working part-time but who wish to work full-time.

Sertich said the new method would allow the Department of Employment and Economic Development, which produces the state’s unemployment estimates, to give lawmakers and others a clearer picture of unemployment in Minnesota.

“This data is already collected. This would just make sure that our own DEED agency can manipulate — in the best sense of the word — manipulate that data and give us a better picture of why Minnesotans are under-employed or unemployed,” Sertich said.

The House Bioscience and Workforce Development Policy and Oversight Division approved the bill March 17 and referred it to the House Higher Education and Workforce Development Finance and Policy Division.

Sen. D. Scott Dibble (DFL-Mpls) sponsors the companion, SF1368, which awaits action by the Senate Business, Industry and Jobs Committee.