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Claim: The government understates the unemployment rate because they report how many people are collecting unemployment insurance rather than how many people are out of work.
Origins: Although this belief is widespread and has at times been reported as factual in the mainstream media, the truth of the matter is that unemployment statistics are gathered
Were this not so, jobless people whose benefits have run out would not be included in the number. Likewise, those who were never eligible for benefits or who never applied for pogey would be missed, rendering the statistic inaccurate.
While not related to the national unemployment rate, unemployment insurance claims data do serve as inputs into the calculation of state and local area unemployment estimates.
Barbara "git along, li'l pogey" Mikkelson
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