Daily Independent (Ashland, KY)

Editorials

August 22, 2010

Not so positive

Unemployment figures show how misleading they can be

ASHLAND — Numbers can be misleading. Such is the case with news that Kentucky’s unemployment rate for July was 9.9 percent, the first time it has fallen below 10 percent since February of 2009.

So that’s good news, right? Well, not exactly.

Kentucky’s jobless rate dropped last month, not because more people were working in the state but because the job market was so weak that more people had quit even looking for work. The U.S. Department of Labor only counts those who are actively looking for work as being unemployed.  

Ron Crouch, director of research and statistics in the Office of Employment and Training, says the number of unemployed Kentuckians who ceased looking for work in July increased so much that the size of the state’s workforce actually dropped so much during the month that the unemployment rate declined even though the number of Kentuckians with jobs also dropped.

Now that’s what we call a misleading statistic. A lower unemployment rate looks like a positive — until you take a closer look at the numbers.

When more employers do begin hiring again, we suspect the number of Kentuckians actively looking for jobs will increase, which could make the unemployment rate increase even though more are working.

So, are you confused now? Well, maybe that’s the point of the government releasing statistics that confuse more than they enlighten.

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