THE UNEMPLOYMENT PARADOX, PART 2….More on the unemployment paradox. Over at Economists for Dean, Lerxst picks up on a New York Times op-ed that says applications for disability payments skyrocketed by more than a million between 1999 and 2003 after staying stable for several years before. If those people were counted as unemployed, the unemployment rate would have peaked at around 8%.
There’s more there if you want to read the whole argument. The authors aren’t arguing that these people don’t deserve payments, just that in the past they would have been counted as unemployed and now they’re not. The unemployment rate looks lower but it’s just a statistical artifact.
The interesting tidbits just keep piling up, don’t they?