The current calculation of the unemployment rate makes me believe that there is no such thing as involuntary unemployment, because the of people who are involuntarily unemployed aren’t even a part of the labor force, thus, they are not included in the unemployment rate calculation. So how can they be unemployed involuntarily if they aren’t even represented in the calculation? (Even so, I still need some more convincing, but this is a start)
And how is it that a lower unemployment rate isn’t always better? As economists, we know this is because the size of the labor force is decreasing. But we want normal people to understand the meaning behind the unemployment rate? Ha. With no background in economics, people see lower unemployments rates and think “Hey, things must be just fine!” But are they really? Does anyone else see the issue with this?