Someone explain how the employment numbers mean anything?

[The Backlash Cometh]

I have a friend who has been on unemployment, and who landed a part time job before her benefits expired. But now that part-time job will be over soon and she can't apply for more unemployment. So I'm asking, what exactly do the unemployment numbers mean? If you have people who can't find jobs and can't apply for unemployment, isn't that a whole lot of people who are going to affect the economy one way or another?

[HopeHoops]

1. They don't. Once your benefits run out you don't count. Reagan included active duty military.

In case you haven't noticed, the active duty military is 100% employed. If they could calculate an "employed" figure, it would be way more accurate. They probably could through federal tax returns, but that's too logical for a government agency.

[FarCenter]

2. There is an unemployment figure called U-6 that includes them

U-6 is about 16.5%, and it includes people who have run out of unemployment benefits.

[Fumesucker]

3. Does U6 include people who have given up on the job search? n/t

[FarCenter]

4. I believe it does

Alternative Measures of Labor Underutilization for States, Fourth Quarter of 2010 through Third Quarter of 2011 Averages
http://www.bls.gov/lau/stalt.htm

Persons who have looked for work in the last 4 weeks are in U-3.

[pinqy]

5. The unemployment rate IS NOT AND HAS NEVER BEEN BASED ON BENEFITS

From http://www.bls.gov/news.release/empsit.tn.htm">The Bureau of Labor Statistics

People are classified as unemployed if they meet all of the following criteria: they had no employment during the reference week; they were available for work at that time; and they made specific efforts to find employment sometime during the 4-week period ending with the reference week. Persons laid off from a job and expecting recall need not be looking for work to be counted as unemployed. The unemployment data derived from the household survey in no way depend upon the eligibility for or receipt of unemployment insurance benefits.

bolding mine.

I have no idea why people just make stuff up to falsely claim that you need to be collecting a check to be classified as unemployed. That doesn't even make up half the unemployed included in the rate.

In brief, the Adult, Civilian, non-institutional population (those 16 and older not in prison, the military or long term physical/mental care) is classified as Labor Force or Not in the Labor Force.
Labor Force are those working (employed) or trying to work (looked for work in the last 4 weeks...unemployed).
Not in the Labor Force are those who are neither working nor looking for work.

The Unemployment rate is Unemployed as a percent of the Labor Force. That tells us what percent of available labor is not being used.

There are alternative measures that include people who might become available and people who are underutilized.
The U-4 includes Discouraged Workers...those who say they're willing and available to work, who have looked in the last 12 months but not last 4 weeks who are not looking because they don't think they'd find anything (pretty subjective).
The U-5 includes all Marginally Attached...Includes the Discouraged and adds on those who stopped looking for any reason.
the U-6 inclused all Marginally Attached and Part Time for Economic Reasons: willing and able to work 35+ hours, but working <35 because hours were cut or can't find full time job.

In short, your friend will be classified as UNEMPLOYED assuming she's going to look for work.