December 2020 February 2021 Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar
JDA Professional Services, Inc.
Contact Information








Articles about JDA



Articles > Abbott & Costello Take on the Real Unemployment Rate
Printer Friendly

Abbott & Costello Take on the Real Unemployment Rate

Abbott & Costello Take on the Real Unemployment Rate

By Barry Levinson, US News and World Report



COSTELLO:   I want to talk about the unemployment rate in America.

ABBOTT:   Good Subject.  Terrible Times.  It’s 5.6%.

COSTELLO:   That many people are out of work?

ABBOTT:   No, that’s 23%.  

COSTELLO:   You just said 5.6%.

ABBOTT:   5.6% Unemployed.

COSTELLO:   Right 5.6% out of work.

ABBOTT:   No, that’s 23%.

COSTELLO:   Okay, so it’s 23% unemployed.

ABBOTT: : No, that’s 5.6%.

COSTELLO:   (waits for a minute)  So, is it 5.6% or 23%?

ABBOTT:   5.6% are unemployed.  23% are out of work.

COSTELLO:   If you are out of work you are unemployed.

ABBOTT:   No, the government said you can’t count the “Out of Work” as the unemployed.  You have to look for work to be unemployed.

COSTELLO:   BUT THEY ARE OUT OF WORK!!!

ABBOTT:   No, you miss the point.

COSTELLO:   What point?

ABBOTT:   Someone who doesn’t look for work can’t be counted with those who look for work. It wouldn’t be fair.

COSTELLO:   To whom?

ABBOTT:   The unemployed.  

COSTELLO:   But ALL of them are out of work.  

ABBOTT:   No, the unemployed are actively looking for work. Those who are out of work gave up looking and if you give up, you are no longer in the ranks of the unemployed.

COSTELLO:   So if you’re off the unemployment roles that would count as less unemployment?

ABBOTT:   Unemployment would go down. Absolutely!

COSTELLO:   The unemployment just goes down because you don’t look for work?

ABBOTT:   Absolutely it goes  down. That’s how it gets to 5.6%. Otherwise it would be 23%.

COSTELLO:   Wait, I got a question for you. That means there are two ways to bring down the unemployment number?  

ABBOTT: Two ways is correct.

COSTELLO:   Unemployment can go down if someone gets a job?

ABBOTT:   Correct.

COSTELLO:   And unemployment can also go down if you stop looking for a job?

ABBOTT:   Bingo.  

COSTELLO:   So there are two ways to bring unemployment down, and the easier of the two is to have people stop looking for work.

ABBOTT:    Now you're thinking like an economist.

COSTELLO: I don't even know what the hell I just said!




<< Back to the Articles Printer Friendly

6464 Savoy Drive, Suite 777 Houston, Texas 77036

© 2021, JDA Professional Services, Inc.  All Rights Reserved.