00:01
So for this, we need to summarize why unemployment rate is no longer a reliable gouge of labor market performance.
00:13
So what's the main idea of the theme of the paper? the main idea is basically that unemployment rate used to be used to gouge labor market performance.
00:48
But since many workers stop seeking employment so they drop out of the labor force because to be in the labor force you have to be seeking employment.
01:37
So because of this employment rate is a better gouge of labor market performance.
02:05
So this is basically the main idea of the paper.
02:12
So if you were to look into more details, you might want to include in your summary why unemployment rate can decrease.
02:26
And the reason why unemployment rate can decrease would be, first of all, people are finding work, so they're no longer unemployed because they are now employed.
02:49
The other one is the workers drop out of the labor force.
02:59
So basically they give up on trying to find work.
03:03
They can't be included in the unemployment rate because the unemployment rate is based on the number of unemployed workers compared to the number of workers in a labor force.
03:18
So if they're not looking for work, they're not going to be included in the unemployment rate.
03:27
Before 2008, unemployment rate was used as a single measure of labor market performance.
03:38
So before 2008, we thought that this was basically an accurate measure.
03:42
We didn't have to consider the employment rate.
03:46
But labor force participation declined after peaking in 2008.
03:52
It declined from 67 .6 % to 65 .7%.
03:57
It's expected to decline further...