Who Are the Unemployed?

A Chartbook

U.S. Department of Labor 

Bureau of Labor Statistics 

1977

Bulletin 1965

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Federal Reserve Bank of St. Louis
Who Are the Unemployed?

A Chartbook

U.S. Department of Labor 

Ray Marshall, Secretary 

Bureau of Labor Statistics 

Julius Shiskin, Commissioner 

1977

Bulletin 1965

For sale by the Superintendent of Documents, U.S. Government Printing Office 

Washington, D.C. 20402

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Stock No. 029-001-02119-4

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Preface

Information in this chartbook is 

derived almost entirely from the 

Current Population Survey, conducted monthly by the Bureau of 

the Census for the Bureau of Labor 

Statistics. Readers interested in 

keeping informed on current developments in the U.S. labor force can 

find up-to-date statistics in regular 

publications of the Bureau of 

Labor Statistics. Labor force data 

are published monthly in Employment and Earnings and the Monthly Labor Review, both available by 

subscription from the Superintendent of Documents, U.S. Government Printing Office, Washington, 

D.C. 20402. Special analyses are 

published in the Monthly Labor

Review as articles and Special

Labor Force Reports. Reprints are 

available, as long as supplies last, 

from the Bureau of Labor Statistics 

or any of its regional offices.

This chartbook was prepared in 

the Office of Current Employment 

Analysis, Division of Employment 

and Unemployment Analysis, John 

E. Bregger, Chief, by Robert N.

Ray, under the direction of Deborah Pisetzner Klein.

Material in this publication is in 

the public domain and may be reproduced without permission of 

the Federal Government. Please 

credit the Bureau of Labor Statistics and cite the name and number 

of the publication.

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Contents

Introduction..........................................................................................................1

Chart 1. Percent distribution of 

the population 16 years 

and over by employment 

status, I976 annual

averages......................................................................... 3

Part I:

Characteristics of the Unem ployed..............................................................5

Chart 2. Percent distribution of 

the civilian labor force 

and the unemployed by 

selected characteristics, I976 annual averages............................................ 7

Chart 3. Percent distribution of 

the civilian labor force 

and the unemployed by 

age and sex, selected

years, I950-76................................................................. 9

Chart 4. Unemployment rates by 

age and sex, I976 annual

averages........................................................................11

Chart 5. Unemployment rates tor 

white, black, and Hispanic origin workers by 

sex and age, I976 annual

averages.......................................................................13

Chart 6. Unemployment rates for 

persons 25 years of age 

and over by educational

attainment, March I976................................................15

Chart 7. Unemployment rates for 

household heads by 

family status, I976 annual averages............................................................... 17

Chart 8. Percent distribution of 

the unemployed by marital status, I956 and I976

annual averages.................................. ....................19

Chart 9. Unemployment rates by

major nonfarm occupation, I976 annual averages .................................................. ....................21

Chart 10. Unemployment rates by

age for Vietnam-era veterans and nonveterans,

I976 annual averages...........................

Chart 11. Range of

unemployment measures based on varying 

definitions of unemployment and the labor 

force, I976 annual

averages.............................................. ....................25

Chart 12. Percent of civilian labor

force unemployed before and after seasonal 

adjustment, I976.................................. ....................27

Chart 13. Employment status of

the unemployed during

preceding and following

months................................................ .................... 29

Chart 14. Average monthly

unemployment and total 

number of persons with 

at least one spell of unemployment during 

I975..................................................... ..................... 31

Chart 15. Methods used by

jobseekers, I976 annual

averages.............................................. ................... 33

Chart 16. Proportion of the

unemployed seeking 

full- and part-time work,

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35

1963 and 1976 annual

averages.......................

Chart 17. Percent distribution of 

persons unemployed 

less than 5 weeks and 

more than 26 weeks by 

selected characteristics, I976 annual

averages................................................................... 37

Chart 18. Unemployed persons by 

family relationship and 

presence of employed 

family member(s), I976

annual averages....................................................... 39

Chart 19. Total unemployment 

and insured unemployment in I973,1975, and

I976.............................................................................41

Chart 20. Unemployment rates in 

poverty and nonpoverty 

areas by race, I976 annual averages.............................................................. 43

Chart 21. Unemployment rates by 

State, I976 annual

averages......................................... 45

Chart 22. Unemployment rates in 

eight industrialized na- 

. tions, quarterly averages,

I970-76.........................................................................47

Part II:

The Cyclical Behavior of

Unem ploym ent................................................................................49

Chart 23. Unemployment rate,

I948-76 ....................................................................... 51

Chart 24. Unemployment rate and 

the average duration of

unemployment, I957-76.............................................. 53

Chart 25. Percentage distribution 

of the unemployed by 

status when entering 

unemployment stream, 

quarterly averages,

I973-76......................................................................... 55

Chart 26. Unemployment rates of 

wage and salary workers 

by major nonagricultural 

industry, selected quarters, I973,1975, and I976 ............................................ 57

Chart 27. Unemployment rates of 

major occupational 

groups, annual averages, I973,1975, and

I976.............................................................................. 59

Chart 28. Duration of

unemployment, selected quarters, I974,

I975, and I976 .............................................................. 61

Chart 29. Unemployed persons

and the number working 

part time due to economic reasons, I969-76............................................. 63

Chart 30. Number of discouraged 

workers and unemployment rate, quarterly averages,

1967-76.......................................................................... 65

Chart 31. Employment-population 

ratios by sex and age,

1958-76 ....................................................................... 67

Appendix: Current Population S u rv e y ......................................................68

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Selected Bibliography .................................................................... 69

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Introduction

Every civilian in the noninstitutional population aged 16 years 

and over is classified in the Current Population Survey as either 

employed, unemployed, or not in 

the labor force. The sum of the employed and unemployed constitutes the civilian labor force.

The majority of the employed are 

persons who worked during the 

survey week. Persons also are 

counted as employed if they had a 

job but did not work during the survey week because of such reasons 

as a strike, illness, or vacation.

Most of the unemployed are persons who did not work during the

survey week but were available for 

work and made specific attempts 

to find a job. However, the category also includes persons on layoff and those waiting to begin a 

new job within 30 days.

Most persons classified as not 

in the labor force are homemakers, 

students, or retired people. Also included are the small but important 

number of persons who want to 

work but are not looking for a job 

because they feel it would be 

impossible to find one—persons 

who are frequently referred to as 

“ discouraged workers.”

1

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Three Out of

Every Five

Americans 16

Years of Age

and Over

Were in the

Civilian

Labor Force

in 1976

Persons 16 years 

and over, I976 annual averages

Total noninstitutional

population.......................................................................... 156,048,000

Armed Forces.........................................................................2,144,000

Civilian noninstitutional

population......................................................................153,904,000

Civilian labor force...........................................................94,773,000

Employed................................................................... 87,485,000

Unemployed.................. 7,288,000

Unemployment rate (unemployed as percent of 

civilian labor

force).................................................................................7.7

Not in labor force........................................................... 59,130,000

Discouraged

workers......................................................................... 911,000

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Chart 1. Percent distribution of the population 16 years and

over by employment status, 1976 annual averages

Civilian labor force

Armed forces

Unem ployed

Civilian em ployed

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Part I: Characteristics of the Unemployed

Among the unemployed are men 

and women, young and old, white 

and black, skilled and unskilled. In 

short, all population groups are affected. However, young people, 

high school dropouts, blue-collar 

workers and blacks are disproportionately represented among the 

unemployed. Many of the unemployed, have the responsibility for 

the support of other persons. Others among the unemployed, such 

as some teenagers, only want 

jobs to earn spending money. In

addition to persons who have lost 

their jobs, the unemployed includes persons who left their jobs 

voluntarily and persons who are 

entering the labor force for the first 

time or reentering after a period of 

absence. Moreover, the unemployed labor force is constantly 

changing, as many persons remain 

jobless for only a short period of 

time while others search for work 

for many months before becoming 

employed or dropping out of the 

labor force.

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The

Composition

of the

Unemployed

Labor Force

Differs from the

Composition

of the

Labor Force

as a Whole

Compared to the labor force as a 

whole, the unemployed work force 

is disproportionately young, black, 

female, and blue collar.

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Chart 2. Percent distribution of the civilian labor force

and the unemployed by selected characteristics,

1976 annual averages

5 5 and over

2 5 to 5 4

Civilian

labor

force 16 to 2 4

Unemployed

Age Race

Percent

“ 100

- 90

- 80

- 70

- 60

- 50

- 40

- 30

- 20

- 10 

_ 0

Sex Occupation

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Teenagers and

Adult Women

Now Make

up More Than

Half of the

Unemployed

8

Since 1950, the increasing participation of adult women in the labor 

force and the slowly declining participation of adult men have been 

reflected in an increase in the proportion of women and a drop in the 

proportion of men among the unemployed.

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Chart

Civilian labor force

Unemployed

3. Percent distribution of the civilian labor

force and the unemployed by age and sex,

selected years, 1950-76

1 9 5 0 1 9 5 5 1 9 6 0 1 9 7 0 1 9 7 6

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Unemployment

Rates Are

Highest for

Young People

Unemployment Is highest among 

young people and then diminishes 

with increasing age through the 

central age groups. There is little 

difference in unemployment rates 

between men and women in the 

younger and older age groups, but 

in the central age groups women 

have substantially higher rates 

than men.

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Chart 4. Unemployment rates by age and sex,

1976 annual averages

Percent of civilian labor

force unemployed

15

10

5

Men

Women

0

16 to 19 2 0 to 2 4 2 5 to 3 4 3 5 to 4 4

Age

4 5 to 5 4 5 5 to 6 4 6 5 and over

11

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Unemployment

Rates for

Persons of

Hispanic Origin

Are Below

Those for Black

Workers but

Above Those

for Whites

1 2

Persons of Hispanic origin are the 

second largest minority group in 

the Nation. Their overall unemployment rate is typically between the 

rates of whites and blacks. Decennial census data indicate, however, 

that there is considerable diversity 

within the Hispanic-origin population-persons of Cuban and South 

American origin have considerably 

lower unemployment rates than 

those of Mexican and Puerto Rican 

origin.

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Chart 5. Unemployment rates for white, black, and Hispanic origin

workers by sex and age, 1976 annual averages

Black

Hispanic

White

Percent of civilian labor

force unemployed

4 0

3 0

20

Both sexes

16 to 19 years

Note: Data on persons of Hispanic origin are tabulated separately without regard to race. Therefore Hispanic workers are also

included in the data for white and black workers. At the time of the 1 9 7 0 census, approximately 9 6 percent of the

Hispanic population was white.

13

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Lower

Unemployment

Rates Are

Associated

with Higher

Levels of

Educational

Achievement

14

Obtaining more education substantially reduces the likelihood of 

unemployment. Thus, high school 

graduates have significantly lower 

unemployment rates than dropouts. Similarly, persons with 4 

years or more of college education 

have jobless rates sharply lower 

than those with 1 to 3 years.

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Chart 6. Unemployment rates for persons 25 years of age

and over by educational attainment, March 1976

Percent of civilian labor

force unemployed

10

8

6

4

2

0

8 years of

school or less

9 to 11 years

of school

High school

graduate

1 to 3 years

of college

Elementary High School College

years or more

of college

1 5

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Unemployment

Is Higher for

Female

Family Heads

Than for Male

Family Heads

1 6

Although the unemployment rate 

for all workers who head households is well below the overall national average, there is considerable variation in unemployment 

depending on the sex of the household head and the presence of relatives. Those household heads who 

fit the traditional image—men with 

families—have relatively low unemployment rates. Other male 

heads who live alone or with persons other than relatives experience much higher joblessness.

The highest unemployment 

rates are for female heads living 

with relatives, typically those raising children on their own. These 

women are often handicapped by a 

lack of work experience and training, and by their family responsibilities.

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Chart 7. Unemployment rates for household heads

by family status, 1976 annual averages

Percent of civilian labor

force unemployed

10

8 -

All workers All household

heads

Men Women

Household heads living with

relatives (family heads)

Men Women

Household heads not

living with relatives

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A Declining

Proportion

of the

Unemployed

Are

Married Men

18

The increase in the participation of 

women and the rapid growth of the 

teenage labor force have changed 

the overall composition of the labor force. As adult men have declined as a proportion of the labor 

force, the share of the unemployed 

who are married men has declined 

as well.

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Chart 8. Percent distribution of the unemployed by marital

status, 1956 and 1976 annual averages

Married women

21%

Widowed, divorced

and separated

1956 1976

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Blue-Collar

Workers Have

Relatively

High

Unemployment

Rates

2 0

The probability of becoming unemployed is closely related to the 

type of work a person does. Whitecollar workers, particularly those in 

professional and managerial jobs, 

experience relatively little unemployment, whereas joblessness 

among blue-collar workers is relatively high, particularly among nonfarm laborers and operatives. Service workers also experience high 

unemployment rates.

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Chart 9. Unemployment rates by major nonfarm occupation,

1976 annual averages

Percent of civilian labor

force unemployed

15

Biue-collar workers Service workers

2 1

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Young

Veterans Have

High

Unemployment

Rates

Young veterans (20 to 24 years of 

age) constitute a small and declining proportion of the Vietnam-era 

veteran population (16 percent in 

1976); they are the only group of 

veterans whose unemployment 

rate substantially exceeds that for 

nonveterans of similar age. This 

differential is explained by the 

shorter period young veterans have 

had to find and establish themselves in jobs than their nonveteran peers. In addition, veterans are 

eligible for unemployment compensation which may encourage 

them to sustain their job search 

until they find the right job. Differences in the incidence of unemployment between veterans and 

nonveterans tend to disappear in 

time as older veterans become assimilated into the civilian economy 

and build up work experience.

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Chart 10. Unemployment rates by age for Vietnam-era veterans

and nonveterans, 1976 annual averages

Veterans

Nonveterans

Percent of civilian labor

force unemployed

20

15

10

Total, 2 0 to 3 4 2 0 to 2 4 2 5 to 2 9 3 0 to 3 4

Age

23

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Unemployment

May Be

Viewed from

Many

Different

Perspectives

24

Various alternative measures of 

unemployment are illustrated in 

this chart. The most restrictive 

(U-1) includes only the long duration unemployed, while the broadest measure of underutilization 

(U-7) combines discouraged workers and part-time workers who 

would like a full-time job with persons officially classified as unemployed. In spite of their differences, these indicators all tend to 

move together over the business 

cycle.

Note:

U-1 Persons unemployed 15 weeks or longer as a percent of civilian labor force

U-2 Job losers as a percent of civilian labor force

U -3 Unemployed household heads as a percent of household head labor force

U -4 Unemployed seekers of full-time jobs as a percent of full-time labor force

(including those employed part time for economic reasons)

U -5 TOTAL UN E M P LO YM EN T AS A PERCENT O F CIVILIAN LABOR FORCE

(OFFICIAL MEASURE)

U -6 Seekers of full-time jobs plus half seekers of part-time jobs plus half total on

part time for economic reasons as a percent of the number of persons in the

civilian labor force less half of the number of persons in the part-time labor force

U-7 U -6 plus discouraged workers

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Chart 11. Range of unemployment measures based on

varying definitions of unemployment and the

labor force, 1976 annual averages

Note: For further information on the development of these measures, see Julius Shiskin, "Employment and Unemployment:

The Doughnut or the Hole,” Monthly Labor Review, February 1 9 7 6.

2 5

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Unemployment

Follows a

Predictable

Seasonal

Pattern

Throughout the

Year

26

Seasonal ups and downs are 

caused by the recurring patterns of 

weather, production schedules, 

school schedules, and the like. 

Seasonal adjustment removes 

these systematic variations ancf 

provides a clearer picture of underlying economic developments. 

Thus, after seasonal adjustment, 

the national unemployment rate 

declined over the first half of 1976 

and rose over most of the second 

half of the year.

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Chart 12. Percent of civilian labor force unemployed before

and after seasonal adjustment, 1976

Percent 10

9 —

8 —

7 —

Unemployment rate, before

seasonal adjustment

Seasonally adjusted

unemployment rate

Jan. Feb. Mar. Apr. M ay June July Aug. Sept. Oct. Nov. Dec.

27

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There Is

Considerable

Turnover

in the Ranks

of the

Unemployed

from

Month to

Month

28

In an average month during 1976 

nearly half of the unemployed were 

new to that situation. Some of 

them had just entered the labor 

force in search of a job, while others left or lost a job they had held 

during the previous month. By the 

following month, about one-fourth 

of the unemployed had found a job 

and one-fifth had left the labor 

force (to attend school, keep 

house, go into retirement, etc.)

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Chart 13. Employment status of the unemployed during

preceding and following months

Employment status

in previous month

Number unemployed Employment status

in current month in following month

Not in the

labor force

Attending

school

Keeping house

Other

Attending

school

Keeping house

Other

Unemployed Unemployed

Employed Employed

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The Number

of Persons

Experiencing

Unemployment

During the

Year Is Much

Greater Than

the Average

Number

Unemployed

in Any

One Month

30

The total number of persons experiencing unemployment at any time 

during the year greatly exceeds the 

number unemployed at any one 

time. In 1975 for instance (most recent data available), the number of 

different individuals who were unemployed at some time or another 

was 2.7 times the average monthly 

figure. This was consistent with totals in past years which have generally ranged from to 4 times 

the average monthly level.

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Chart 14. Average monthly unemployment and total

number of persons with at least one spell of

unemployment during 1975

Number experiencing unemployment in 1 9 7 5

Total 7 ,8 3 0 ,0 0 0

Average monthly unemployment level, 1 9 7 5

31

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The Most

Widely Used

Jobseeking

Method

Is Applying

Directly

to Prospective

Employers

32

The unemployed use a variety of 

methods in the search for work. In 

addition to applying to the employer directly, the most frequently used 

methods include public employment agencies and newspaper ads.

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Chart 15.

Used public employment agency

Used private employment agency

Applied directly to employers

Asked friends or relatives

Placed or answered ads

Other

Methods used by jobseekers,

1976 annual averages

Percent of jobseekers

0 15 3 0 4 5 6 0 7 5

ME! 8K

811111 1 8 $p 111’-IflifsLl 1 '

Note: The percentage using each method totals more than 1 0 0 because many jobseekers used

more than one method.

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One-Fifth

of the

Unemployed

Are Seeking

Part-Time

Work

As the service industries such as 

trade have grown in importance, a 

greater proportion of jobs have 

short workweeks. This, together 

with the expanding proportion of 

teenagers and women in the work 

force, has resulted in an increase 

during recent years in the proportion of the unemployed seeking 

part-time work.

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Chart 16. Proportion of the unemployed seeking full- and

part-time work, 1963 and 1976 annual averages

7 9%

86%

14%

21%

Seeking full-time work

1963 1976

Seeking part-time work

35

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The Long-Term

Unemployed

Have Different

Characteristics

Than the

Short-Term

Unemployed

36

Compared with persons unemployed a month or less, persons 

unemployed for long periods are 

disproportionately job losers, 

household heads, and adult men.

In addition, they are more likely to 

be older and to be seeking full-time 

work.

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Chart 17. Percent distribution of persons unemployed less

than 5 weeks and more than 26 weeks by selected

characteristics, 1976 annual averages

Entrants

into the

labor force

Job

losers

Unemployed

less than

5 weeks

mmmmmm Unemployed

I 27 weeks

I or more

Job

leavers

Household

heads

Other than

household

heads

Percent

Teenagers

Adult men

Adult women

37

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Other Family

Members Often

Ease the

Burden of

Unemployment

38

The financial hardship that is usually associated with unemployment is sometimes eased by the 

presence of an employed person in 

the family. About half of all unemployed male family heads have a 

person in their family who is employed. By contrast, only about 

one-fifth of jobless female family 

heads are in households in which a 

family member is employed.

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Chart 18. Unemployed persons by family relationship and presence

of employed family member(s), 1976 annual averages

With employed

person in family

Without employed

person in family

Unemployed male family heads

5 0 .5%

Unemployed female family heads

81 .7%

4 9 .5%

18.3%

Unemployed wives Unemployed relatives of family heads

16.4% 16.6%

8 3 .6% 8 3 .4 %

39

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Unemployment

Insurance

Cushions the

Financial

Impact of

Unemployment

for Many

Workers

40

Unemployment compensation programs are specifically designed to 

assist experienced workers who 

lose their jobs by providing a portion of lost wages. Thus, the proportion of the jobless receiving unemployment compensation is 

higher in years of high unemployment, such as 1975, when job loss 

increases.

Furthermore, beginning in 1975, 

two federally financed supplementary programs extended unemployment benefits. One program, Federal Supplementary Benefits, provides up to 13 additional weeks of 

federally sponsored benefits during periods of high unemployment 

to qualified claimants who exhaust their eligibility under permanent programs. A second Federal program, Special Unemployment 

Assistance, is a temporary program of assistance during periods 

of high unemployment for individuals who are not eligible for unemployment benefits under any State 

or Federal law.

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Chart 19. Total unemployment and insured unemployment in

1973, 1975, and 1976

Millions of persons

10

9

8

7

6

5

4

Special unemployment

3

assistance

2

Federal supplementary

benefits

1

Regular payments

0

Total

unemployment

Total insured

unemployment

1 9 7 3

Total

unemployment

Total insured

unemployment

1 9 7 5

Total

unemployment

Total insured

unemployment

1 9 7 6

Note: Proportions based on these counts should be used with caution because the two sets of data differ in concept

and method of measurement.

41

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Unemployment

Rates Are

Highest in

Metropolitan

Poverty Areas

42

Metropolitan “ poverty areas” — 

those Census tracts in which at 

least 20 percent of the residents 

are poor—generally have a greater 

incidence of unemployment than 

nonpoverty areas. Outside the metropolis, unemployment rates are 

about the same in poverty and nonpoverty areas. In all areas, blacks 

have higher unemployment rates 

than white workers.

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Federal Reserve Bank of St. Louis
Chart 20. Unemployment rates in poverty and nonpoverty

areas by race, 1976 annual averages

Percent of civilian labor

force in employed

20

15 -

White

Black and

other

10

5 -

Poverty areas Nonpoverty areas

Metropolitan areas

Poverty areas Nonpoverty areas

Nonmetropolitan areas

Note: Designation of poverty areas is based upon 1 9 7 0 decennial census income data.

43

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Federal Reserve Bank of St. Louis
The Northeast

and West

Have Relatively

More

Joblessness

Than the

Rest of the

Nation

The relatively high unemployment 

in the industrialized Northeast 

stems from generally sluggish 

growth in manufacturing, the region’s major economic activity, 

and a decline in construction employment. Factors contributing to 

high unemployment in the West 

are the relatively larger numbers of 

people who migrate into the region 

looking for jobs, the younger age 

composition of the population, and 

the greater prevalence of highly 

seasonal industries, such as logging and food harvesting and processing.

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Federal Reserve Bank of St. Louis
Chart 21. Unemployment rates by State,

1976 annual averages

8 .5 % and over

6 .5 % to 8.4%

4.5% to 6.4%

Less than 4.5%

45

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Federal Reserve Bank of St. Louis
The United

States

and Canada

Historically

Have

Had Higher

Unemployment

Rates than

Other

Industrialized

Countries

Unemployment is not estimated in 

the same way in all countries nor 

are the concepts identical from 

country to country. However, after 

adjustment to the extent possible 

for these differences, the United 

States and Canada have averaged 

consistently higher unemployment 

rates than other industrialized 

countries. Economic, cultural, and 

political factors have all contributed to this pattern.

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Chart 22. Unemployment rates in eight industrialized

nations, quarterly averages, 1970-76

Percent of civilian labor

force unemployed

10

United States—

Germany

1970 1971 1972 1973 1974 1975 1976

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
Part II: The Cyclical Behavior of Unemployment

Unemployment has fluctuated 

markedly over the post-World War 

II period, with certain important 

patterns consistently recurring 

during slack periods in the economy. Even before unemployment 

begins to rise, the number of hours 

in the workweek usually declines 

as producers take the less drastic 

course of cutting hours rather than 

laying off workers. As conditions 

worsen, however, job cutbacks become more widespread and the 

proportion of the unemployed who 

have lost their last job will usually 

rise. The average duration of unemployment will also rise as the recession continues, although initially it may be unchanged or even 

decline as newly unemployed 

workers lower the average. As high 

unemployment persists, some 

workers may become discouraged 

and stop looking for work entirely. 

All of these factors tend to be reversed when the economy begins 

to improve and employers begin to 

expand their work force. The 

following charts depict the impact 

of the recent recession and recovery. (All data are seasonally adjusted.)

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Federal Reserve Bank of St. Louis
Unemployment

Peaked at

9.0 Percent

in 1975,

Well Above the

Previous

Postwar High

of 7.9 Percent

Reached

in 1949

There have been six business 

downturns in the post-World War II 

period, each marked by a high level 

of unemployment. The downturn 

during 1973-75 was particularly severe, as unemployment reached its 

highest level in 35 years. The level 

of unemployment continued to be 

high in the recovery, despite an upsurge in jobholding, as an expansion in labor force growth tended 

to slow the drop in the unemployment rate.

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Chart 23. Unemployment rate, 1948-76

1950 1955 1960 1965 1970 1976

Note: Recession periods determined by the National Bureau of Economic Research.

51

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Federal Reserve Bank of St. Louis
Movements

in the

Rate and

Duration of

Unemployment

Are Parallel

Over Time

5 2

Changes in the incidence of unemployment are affected both by the 

flow into and out of unemployment 

and by changes in the length of 

time persons remain unemployed. 

These changes tend to move in 

tandem, but duration changes lag 

slightly. Thus, when economic 

conditions worsen, there are increases in the number of persons 

losing jobs and in the number 

unable to find work after entering 

the labor force. There is also an increase in the duration of joblessness among those who enter the 

unemployment stream.

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Chart 24. Unemployment rate and the average

duration of unemployment, 1957-76

Percent of 10 .0

civilian labor force

unemployed

Total unemployment

rate 75

5.0

2.5

0.0

53

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Federal Reserve Bank of St. Louis
Unemployment

Increases

During

Recessions Are

Generally

Due to

Job Cutbacks

5 4

Although the numbers of job losers, reentrants, and new entrants 

into unemployment all rise during 

recessions, the proportion who 

have lost their job increases the 

most. The number of persons who 

leave a job and become unemployed is not generally affected by 

the business cycle. During the 

fourth quarter of 1976, about half of 

the unemployed had lost their last 

job, a very high proportion for an 

expansionary period.

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Federal Reserve Bank of St. Louis
25.

t 100

9 0

8 0

7 0

6 0

5 0

4 0

3 0

20

10

0

Percentage distribution of the unemployed by

status when entering unemployment stream,

quarterly averages, 1973-76

1 9 7 3

SBtt

1 9 7 4 1 9 7 5 1 9 7 6

55

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Federal Reserve Bank of St. Louis
Construction

and

Manufacturing

Workers

Are

Most Affected

by the

Business

Cycle

5 6

Recessions almost always affect 

goods-producing industries to a 

greater extent than service-producing industries. This primarily 

stems from the fact that much of 

the goods consumed during recessions come from stored inventories that are not replaced by new 

production. In the case of services, 

however, consumption and output 

must coincide since inventories 

are essentially nonexistent. This 

pattern is illustrated in the most recent recession and recovery periods in which the strongest cyclical 

swings have occurred in construction and manufacturing.

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Chart 26. Unemployment rates of wage and salary

workers by major nonagricultural industry,

selected quarters, 1973, 1975, and 1976

Percent of wage Goods producing

and salary

workers unemployed

Service producing

1 9 7 3 IV

1 9 7 6 IV

<3°

5 7

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Federal Reserve Bank of St. Louis
Business

Cycles Affect

Blue-Collar

Workers to a

Much Greater

Extent Than

Other Major

Occupational

Groups

58

All major occupational groups 

faced unusually high levels of unemployment during the recent 

downturn. The greatest increase in 

joblessness, however, was borne 

by blue-collar workers, particularly 

operatives—the typical factory 

assembly line workers. In the 

post-recession year of 1976, joblessness among blue-collar workers fell by over 2 percentage points, 

while the unemployment rates of 

white-collar and service workers 

remained virtually unchanged. 

Nevertheless, the unemployment 

rate of blue-collar workers was still 

higher than that of service workers 

and more than twice that of whitecollar workers.

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Chart 27. Unemployment rates of major occupational groups,

annual averages, 1973, 1975, and 1976

Percent of experienced

workers unemployed

15

10

1973

1975

1976

0 L_

/

Blue collar

5 9

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Federal Reserve Bank of St. Louis
The Duration of

Unemployment

Varies Over

the Course of

the Business

Cycle

60

As economic conditions improve, 

jobs become easier to find and the 

number of newly unemployed usually decreases. A drop in the number of newly unemployed persons, 

however, initially tends to raise the 

average duration of unemployment 

and only after a period of time will 

the presence of more jobs tend to 

lower the proportion of the unemployed in the longer duration categories. This is illustrated by the 

current recovery period in which 

the proportion of the unemployed 

who were jobless for 15 weeks or 

longer has been slow to decline despite a gain of 3 million jobs between the third quarter of 1975 and 

the fourth quarter of 1976.

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Chart 28. Duration of unemployment, selected quarters,

1974, 1975, and 1976

Less than 5 weeks

5 -1 4 weeks

15 weeks and over

52%

1 9 7 4 I

4 .6 million

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Federal Reserve Bank of St. Louis
The Number of

People Who Are

Involuntarily

on a Reduced

Workweek

Increases

During

Recessions and

Declines During

Recoveries

62

Employed workers who work less 

than 35 hours a week but want to 

work full time are classified as on 

part-time schedules for economic 

reasons. The increase in their numbers during recessions indicates 

that, in addition to the unemployed, other workers are adversely affected by downturns in the 

economy.

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Federal Reserve Bank of St. Louis
Chart 29. Unemployed persons and the number working part

time due to economic reasons, 1969-76

Recession

Thousands 9 .0 0 0

8.000

7 .0 0 0

6.000

5 .0 0 0

4 .0 0 0

3 .0 0 0

2.000

1,000

0

1 9 6 9 1 9 7 0 1971 1 9 7 2 1 9 7 3 1 9 7 4 1 9 7 5 1 9 7 6

63

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Federal Reserve Bank of St. Louis
The Number

of Persons

Discouraged

from Seeking

Work Is Also

Cyclically

Sensitive

64

Discouraged workers are persons 

who want a job but are not looking 

for work because they believe it impossible to find work. Because 

they are not engaged in active job 

search, they do not meet the job 

market test and are therefore classified as not in the labor force rather than unemployed. While some 

of these persons are discouraged 

because of personal reasons such 

as age or lack of education, the majority simply believe there are no 

jobs in their line of work or area. It 

is this category of discouraged 

workers which normally increases 

or decreases in line with the unemployment rate.

During the latest recession, the 

number of discouraged workers 

citing job market factors as their 

reason for not seeking work exceeded 900,000, the highest level 

since these statistics were first 

collected in 1967. By the fourth 

quarter of 1976, however, their number had fallen below 800,000.

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Chart 30. Number of discouraged workers and unemployment

rate, quarterly averages, 1970-76

6 5

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Federal Reserve Bank of St. Louis
More Than

55 Percent

of the

Population

Is Employed

6 6

To help put the preceding material 

into perspective, this last chart 

presents the ratio of civilian employment to the total noninstitutional population. Over the postWorld War II period, the overall proportion of the population that is 

working has remained about 

steady. There have been, however, 

offsetting underlying movements, 

as the ratio for adult men declined 

(primarily because of earlier 

retirements) while the ratio for 

women rose (because of their increasing propensity to engage in 

market work).

The measure shows that for the 

past 10 years the economy has 

been able to consistently generate 

jobs for more than 55 percent of 

the population despite short-term 

cyclical reverses, strong population growth, and substantial 

changes in the labor force attachment of various worker groups.

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Federal Reserve Bank of St. Louis
Chart 31. Employment-population ratios by

sex and age, 1958-76

Percent of

population employed

1 9 5 8 1 9 6 0 1 9 6 2 1 9 6 4 1 9 6 6 1 9 6 8 1 9 7 0 1 9 7 2 1 9 7 4 1 9 7 6

67

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Federal Reserve Bank of St. Louis
Appendix: Current Population Survey

Statistics on the employment 

status of the population are derived from the Current Population 

Survey. This survey, conducted 

each month by the Bureau of the 

Census for the Bureau of Labor 

Statistics, provides comprehensive data on the labor force, the 

employed, and the unemployed, including such characteristics as 

age, sex, color, marital status, 

household relationship, occupation, and industry for the population 16 years of age and over. For 

the unemployed, data are obtained 

on jobseeking methods used, reasons for unemployment, and the 

duration of unemployment.

Trained interviewers collect the information from a sample of about 

47,000 households, representing

461 areas in 923 counties and independent cities, with coverage in 

50 States and the District of 

Columbia. The data collected are 

based on the activity or status reported for the calendar week including the 12th of the month.

Terms used in the chartbook are 

explained below:

Employment

In the household survey every person who did any work at all for pay 

or profit during the reference week 

is counted as employed. Persons 

working without pay are counted 

as employed only if they worked at 

least 15 hours during the reference 

week in a family-operated enterprise (and are then referred to as 

“ unpaid family workers”). Persons

who did no work at all during the 

week are counted as employed if

they were temporarily absent from 

their regular job because of illness, 

bad weather, vacation, or an industrial dispute, regardless of whether 

or not they were paid. Persons with 

more than one job are counted only 

once and are classified according 

to the job at which they worked the 

greatest number of hours during 

the week.

Unemployment

Total unemployment is a measure 

of the number of persons without 

work during the reference week, 

who made specific efforts to find a 

job within the past 4 weeks and 

were available for work during the 

reference week (except for temporary illness). Also included as unemployed are those who did not 

work at all, were available for work, 

and (a) were waiting to be called 

back to a job from which they had 

been laid off, or (b) were waiting to 

report to a new wage or salary job 

within 30 days.

Labor Force

The civilian labor force is the sum 

of the total number of employed 

and unemployed people. Members 

of the Armed Forces are excluded 

from the civilian labor force by definition but are added to it to yield 

the “ total labor force.” 

Unemployment Rate

The unemployment rate is the percent of a group’s labor force that is 

unemployed.

6 8

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Selected Bibliography

Bregger, John E. “ Unemployment 

Statistics and What They Mean,” 

Monthly Labor Review,

November 1971.

Green, Gloria P. “ Measuring Total 

and State Insured Unemployment,” Monthly Labor Review,

June 1971.

President’s Committee to Appraise 

Employment and Unemployment 

Statistics. Measuring Employment and Unemployment, 1962.

Shiskin, Julius. “ Employment and 

Unemployment: The Doughnut 

or the Hole?” , Monthly Labor

Review, February 1976.

________ Labor Force and

Unemployment. Report 486, Bureau of Labor Statistics, 1976.

U.S. Department of Labor, Bureau 

of Labor Statistics. Employment

and Earnings. Monthly publication containing all current labor 

force data.

________ __________ The Employment Situation. Monthly 

press release.

________ __________ How the

Government Measures Unemployment. Report 418,1973.

________ ,________ . Labor Force

Developments. Quarterly press 

release.

U.S. Department of Labor, Bureau

of Labor Statistics; and U.S. 

Department of Commerce, Bureau of the Census. Concepts

and Methods Used in Labor

Force Statistics Derived from

the Current Population Survey,

BLS Report 463 and Current Population Report P-23, No. 62,1976.

U.S. Department of Labor, Employment and Training Administration. Employment and Training

Report of the President. Published annually.

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Federal Reserve Bank of St. Louis
Bureau of Labor Statistics

Regional Offices

Region i

1603 JFK Federal Building 

Government Center 

Boston, Mass. 02203 

Phone: (617) 223-6761

Region II

Suite 3400 

1515 Broadway 

New York, N.Y. 10036 

Phone: (212) 399-5405

Region III

3535 Market Street 

P.O. Box 13309 

Philadelphia, Pa. 19101 

Phone: (215) 596-1154

Region IV

1371 Peachtree Street, NE. 

Atlanta, Ga 30309 

Phone: (404) 881-4418

Region V

9th Floor

Federal Office Building 

230 S. Dearborn Street 

Chicago, III. 60604 

Phone: (312) 353-1880

Region VI

Second Floor

555 Griffin Square Building 

Dallas, Tex. 75202 

Phone: (214) 749-3516

Regions VII and VIII*

911 Walnut Street 

Kansas City, Mo. 64106 

Phone: (816) 374-2481

Regions IX and X**

450 Golden Gate Avenue 

Box 36017

San Francisco, Calif. 94102 

Phone: (415) 556-4678

*Regions VII and VIII are serviced 

by Kansas City

**Regions IX and X are serviced 

by San Francisco

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Federal Reserve Bank of St. Louis
U. S. Department of Labor 

Bureau of Labor Statistics 

Washington, D.C. 20212

Official Business

Penalty for private use, $300

Postage and Fees Paid 

U.S. Department of Labor

Third Class Mail

Lab-441

☆ U.S. GOVERNMENT PRINTING OFFICE : 1977 0-250-056

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