According to the Bureau of Labor Statistics (BLS), Wisconsin lost 22,300 jobs between February 2011 and February 2012. The BLS also reports that the official unemployment rate in Wisconsin improved from a seasonally adjusted 7.6 percent to 6.9 percent during the same period.
How can the unemployment rate and the number of jobs both decline?
B. Some people stopped looking for work.
The official unemployment (U-3) includes only those people who do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. Those who want to work, but have not actively looked for work in the last four weeks are not included in the U-3 rate.