October 21, 2009 07:00 PM UTC

Colorado unemployment drops to 7%; 'worst behind us,' says state labor chief

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• by: Danny the Red (hair)

( – promoted by Colorado Pols)

Since so many question the “unemployment rate,” Additional information on discouraged workers added below the fold.

http://denver.bizjournals.com/…

This is great news. Unemployment is a lagging economic indicator that I thought was still another 6 months from turning.

Colorado avoided a lot of the over building in 2007 and it is clear to me that someone, some place put the breaks on over development.  I would like to know who so I can send them a big bouquet, its made our recession more mild.

Now if tax revenues start to turn around I can take off my panic hat.

http://www.bls.gov/lau/stalt.htm

The six state measures are based on the same definitions as those published for the U.S.:

   * U-1, persons unemployed 15 weeks or longer, as a percent of the civilian labor force;

   * U-2, job losers and persons who completed temporary jobs, as a percent of the civilian labor force;

   * U-3, total unemployed, as a percent of the civilian labor force (this is the definition used for the official unemployment rate);

   * U-4, total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers;

   * U-5, total unemployed, plus discouraged workers, plus all other marginally attached workers, as a percent of the civilian labor force plus all marginally attached workers; and

   * U-6, total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers.

Generally, all six measures move together over time, including across business cycles. Similarly, states that have high official unemployment rates tend to have high values for the other five measures; the reverse is true for states with low unemployment rates. Note that, in the table and in the comparisons below, the unemployment rates (U-3) that are shown are derived directly from the CPS. As a result, these U-3 measures may differ from the official state unemployment rates for the latest 4-quarter period.

http://www.bls.gov/news.releas…

These are national measures, but the step ups tend to remain consistent over time.  I don’t have time to find local measures.

Modified to fit as post.

Alternative measures of labor underutilization

                                               Sept.   2009                                                                                                                                              

 U-1 Persons unemployed 15 weeks or longer, as a percent of the civilian labor force 5.4  

 U-2 Job losers and persons who completed temporary jobs, as a percent of the civilian labor force 6.8  

 U-3 Total unemployed, as a percent of the civilian labor force (official unemployment rate)   9.8  

 U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus  discouraged workers 10.2  

 U-5 Total unemployed, plus discouraged workers, plus all other marginally attached workers, as a  percent of the civilian labor force plus all marginally attached workers 11.1  

 U-6 Total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers 17.0