Larry Hanlon – 9/10/04

This page was last updated on September 11, 2004.

Jobless rate is much worse; Larry Hanlon; Beaver County Times; September 10, 2004.

Below is a detailed critique of the subject letter.

“How come none of the media services try to explain how the poverty level can rise while unemployment drops?

“Well, unemployment figures are based on the number of people actually collecting unemployment benefits. Once you run out of benefits, you are no longer considered unemployed - even though you still don’t have a job.”

[RWC] Wrong. Either Mr. Hanlon didn’t do his research or he is deliberately trying to mislead us. Unemployment figures are not “based on the number of people actually collecting unemployment benefits.” Unemployment figures come from the Household Survey conducted monthly by the Bureau of Labor Statistics. This means both those who receive unemployment benefits and those who don’t are counted. Of course, this blows the whole basis of Mr. Hanlon’s letter.

“What is even worse is that years ago, we had more extensions of benefits that would keep you on the roles [sic] longer.”

[RWC] Studies show when we give unemployment benefit extensions, unemployment stays higher than it should, longer than it should. In other words, some people won’t get serious about taking a job until their benefits run out.

“Since in most states there are no more extensions to be had, the unemployment figures are extremely bogus and make G.W. Bush look good even though unemployment figures are probably much worse that the reported 5.4 percent.”

[RWC] Sorry, Mr. Hanlon, the only thing that’s “extremely bogus” here is your claim about the collection of unemployment figures. Since your premise was wrong, so is your conclusion.