'Misclassification Error' Leads To Inaccurate May Jobs Report

The May jobs report initially seemed positive, but an error was found indicating the unemployment rate was actually 16.3%, higher than the reported 13.3%. The Bureau of Labor Statistics (BLS) and Census Bureau are investigating the mistake, which involved misclassifying some temporarily unemployed individuals as employed but absent for other reasons. This issue, first noticed in March, suggests that unemployment rates for March and April were also understated. The misclassification was partly due to COVID-19, as people waiting to return to jobs were incorrectly categorized.

What was the initially reported unemployment rate in the May jobs report?

• 16.3%

• 20%

• 10%

• 13.3%

What error did the Bureau of Labor Statistics identify in the May jobs report?

• Data entry error

• Misclassification of unemployed individuals

• Overestimation of job growth

• Incorrect GDP calculation

What does the 'other reasons' category typically include?

• Remote work

• Maternity leave

• Jury duty or vacation

• Sick leave

When did the BLS first notice the misclassification trend?

• February

• March

• May

• April

What implication does the misclassification have on the reported unemployment rates for March and April?

• They were not affected

• They were lower than reported

• They were higher than reported

• They were accurate