Are unemployment numbers really going down?

By Kirk Mason (mason@wsbt.com)

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(AP Photo/The Indianapolis Star, Matt Detrich)

By WSBT News1

Story Created: Aug 31, 2009 at 11:20 AM EST

Story Updated: Aug 31, 2009 at 11:20 AM EST

In certain parts of our area we've seen a recent drop in unemployment numbers.

Nancy from South Bend has a Good Question: “Are the numbers really going down, or is that because people have used up their benefits and are no longer receiving unemployment?”

Unemployment numbers are not going to be 100 percent accurate, but there are a lot of things done to make them as accurate as possible.

First, all states collect there information the same way — under the orders of the U.S. Labor Department. That means we have an apples-to-apples comparison when comparing unemployment numbers between states.

Second, Mark Lotter from Indiana Workforce Development says people who run out of unemployment benefits are still factored into unemployment numbers. He says there is a misconception out there that they are not.

Having said that, Workforce Development statistics show that in July of this year Indiana had 80,000 fewer members of the labor force than it did in July of 2008.

Two factors can lead to that — either people have moved out of the state, or others who are discouraged have quit looking for work. In either case, that group of 80,000 is not factored into the unemployment numbers.

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