which is where they get their data about unemployment and various other things:
---
http://dsc.ucsf.edu/main.php?name=cpsSponsoring agency and purpose of the survey
The Current Population Survey is a monthly longitudinal survey conducted by the Bureau of the Census for the Bureau of Labor Statistics, U.S. Department of Commerce.
Its purpose is to provide information on the labor force characteristics of the U.S. population. The CPS provide estimates of employment, unemployment, earnings, hours of work, and other indicators.
-
Who is included in the survey
The basic monthly CPS is a nationally representative sample of the civilian non-institutionalized, resident population of the U.S. The March supplement also includes members of the armed forces residing with their families in civilian housing or on military bases.
How often the survey is done
The CPS is a monthly panel survey that includes about 50,000 households each month. The sample includes eight panels, with a new panel brought into rotation each month. In each panel, households are interviewed once a month for four months in a row, and again for the same four calendar months of the following year.
How the survey is conducted
For the first month's interview, the interviewer visits the address selected for the survey to determine if a responsible adult will provide the necessary information. If someone at the address agrees to an interview, the interviewer uses a laptop computer to conduct the interview. Interviewees in each household are asked to provide information about themselves and other household members age 16 or older.
The fifth interview is also done in person most of the time. Interviews in the other six months are done by telephone.
Sampling strategy
The CPS uses a complex stratified sampling technique that identifies 754 geographic sample areas and then selects clusters of housing units within each area. Of the approximately 70,000 housing units selected each month, about 60,000 are occupied and eligible for interview. Of these, about 7.5% are not interviewed because of absence, refusal to cooperate, inability to respond, or unavailability.
This sampling strategy results in a monthly sample of about 50,000 households. Information is obtained each month for about 112,000 individuals age 16 or older.
---
So for the first month and the last month, you get an in-person visit to your home. The other six months, the survey is conducted by phone. I wonder what happens if you lose your job and your phone gets cut off?
Also, look at the criteria for classifying people as employed or unemployed:
---
http://www.bls.gov/cps/faq.htm#Ques4Who is counted as employed?
Employed persons consist of:
All persons who did any work for pay or profit during the survey reference week.
All persons who did at least 15 hours of unpaid work in a family-owned enterprise operated by someone in their household.
All persons who were temporarily absent from their regular jobs, whether they were paid or not.
Not all of the wide range of job situations in the American economy fit neatly into a given category. For example, people are considered employed if they did any work at all for pay or profit during the survey reference week. This includes all part-time and temporary work, as well as regular full-time, year-round employment.
---
So if you work for 8 hours in the week that you happen to be surveyed, you're counted as employed for that month. Or if your spouse has lost his/her job and is now working 50 hours a week for free at your home business, you're both employed!
Now, check out those who are not considered to be part of the labor force:
---
http://www.bls.gov/cps/faq.htm#Ques6Who is not in the labor force?
Persons not in the labor force are those who are not classified as employed or unemployed during the survey reference week.
Labor force measures are based on the civilian noninstitutional population 16 years old and over. (Excluded are persons under 16 years of age, all persons confined to institutions such as nursing homes and prisons, and persons on active duty in the Armed Forces.) The labor force is made up of the employed and the unemployed. The remainder—those who have no job and are not looking for one—are counted as "not in the labor force." Many who are not in the labor force are going to school or are retired. Family responsibilities keep others out of the labor force.
---
So, if I'm interpreting this correctly, everyone in prison, on active duty in the military, and those who are going back to school with the futile hope of becoming qualified for a new type of job are not even in the equation! Now I hope you see why we can NEVER decriminalize drugs, stop any of our ridiculous wars, or stop funneling taxpayer money to the Kaplans, ITT Techs and University of Phoenixes!
I'm glad you asked these questions, because I've always been a little unclear on how the unemployment rate could be so low. I knew there had to be huge problems with their methodology!