One of the most relevant metrics this past year has been the unemployment rate. The driving force behind the focus on the unemployment rate has been the slow road to recovery post the financial crisis in which the U.S. lost over 8 million jobs, as well as the Federal Reserve announcement that it is targeting an unemployment rate of 6.5 percent before raising interest rates. Since that target was announced the unemployment rate has garnered a lot of attention. However, there are many other factors related to the health of the labor force that at times skew the unemployment rate. These factors, among others, have caused the Fed to pause before tapering the pace of the latest round of quantitative easing.
Read the Article (PDF)