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Is the official unemployment rate misleading? A look at labor market statistics over the business cycle.(United States)

From: Economic Perspectives  |  Date: 6/22/2004  |  Author: Barrow, Lisa

Introduction and summary

In recent years, both economists and the popular press have asked whether the measured unemployment rate is "too low." In particular, observers question whether current unemployment rates accurately reflect labor market weakness. By some conventional measures, the most recent recession was relatively mild. The official unemployment rate rose to a high of 6.3 percent in June 2003, which is low by historical standards (see figure 1), and real gross domestic ...

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