Introduction
One of the most common misinterpretations of the unemployment rate is the belief that it is simply a representation of the number of people who are receiving state unemployment insurance benefits. This article will disprove that misperception. First, it will discuss where the two different measures - the number of unemployed (as published) and the number of unemployment insurance recipients - originate. Next, it will identify the major differences between the published number of unemployed and the number of persons receiving state unemployment insurance benefits. Finally, we will examine what the unemployment rate might be if it included only unemployment insurance recipients.
