Unemployment rates rise—frustrated workers drop out of work force

Legal news for employment attorneys. Unemployment rates are higher then reported, people are dropping out of the workforce.

Employment attorneys alert- Unemployment raises while more discouraged workers leave the workforce.

West Palm Beach, FL—On Friday, January 22, 2010 the U.S. government announced that unemployment rates in 43 states increased last month, and has revealed that many workers have simply given up looking for a job. Since November, when 36 states reported that their unemployment rates decreased, four other states—South Carolina, Delaware, Florida, and North Carolina—hit a reported record-high in unemployment rates in December, as reported by the Palm Beach Post.

An alarming nationwide trend has sprung up in states that have been hit the hardest during the tough economical times. In some states like Michigan and California, they saw their jobless rates stabilize even though they have turned out jobs. The unemployment rates have stabilized because frustrated and discouraged workers have given up on trying to find work, and dropped out of the labor force, which excludes them from the unemployment rate. Although the hardest hit state, California, has lost 38,800 jobs, their employment rate has remained unchanged at 12.4 percent. The unemployment rate has stayed the same because 107,000 people, or 0.6 percent of the states workforce, have stopped looking for a job. While Michigan, who holds the nations top spot in unemployment rates, has lost 15,700 jobs, and 31,000 people have left the labor force, causing the states jobless rate to fall from 14.6 percent from 14.7 percent. Across the nation in December, 6000,00 people left the work force all together. Officials fear the unemployment rate could be a lot higher then reported because of the discouraged workforce that has given up all together.

Legal News Reporter: Nicole Howley-Legal news for employment lawyers.

About the Author Nicole