Unemployment confusion in Northern KY

Sunday, February 19, 2006

Recent unemployment reports in northern Kentucky have created some question. Economic development professionals cannot understand why the Northern Kentucky economy, which by all accounts has been growing, has a slightly higher unemployment rate than the national average. Read more.

This article highlights the problems of using unemployment rates as a indicator of regional economic health. Unemployment rates are computed numbers. A far better approach is to look at employment numbers, which are not.

Another important distinction: unemployment numbers tend to focus our attention on the short term. Economic developers should be thinking in terms of longer time horizons.

posted by Ed Morrison |

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