The online magazine Mint has posted a new interactive infographic called The Employment Situation in Perspective. I applaud the fact that they included information about the employed, unemployed, and those not in the labor force.
The problem begins with the use of a stacked chart. The problem with stacked charts is that it is difficult to how things are varying with time. For example, can you tell that the civilian labor force has held relatively stable at 153.17 million people? It has varied by plus or minus one percent over the last two years. Can you tell if there were more unemployed in January 2009? 2010?
You can find out more about the job losses and the unemployment rate in our articles: American Idle – Part 1, American Idle – Part 2, and American Idle – Part 3, as well as Correlation does not imply Causation.
By any measure, the unemployment rate is on the rise. But exactly how bad is the problem and what are the implications for the broader economy? To put things in perspective, we need to consider how the unemployment rate is calculated, who is considered employed and who isn’t. Many claim the official rate is flawed and presents an optimistic picture that doesn’t truly reflect reality. Other quoted statistics measuring job loss can be deceptive if selective time periods are used. In our latest infographic we have taken a broad view of the American workforce over the last five years showing the various employment conditions and how each is categorized.
via The Unemployment Situation in Perspective | MintLife Blog | Personal Finance News & Advice.
