The reason for that is because many people gave up looking for a job... That number has grown severely, along with those who lost their unemployment benefits ...
The formula used to equate the unemployment rate is extremely flawed.
The unemployment rate will continue to drop while those who receive unemployment are continued to be dropped from the program...
Of course the misery index will rise..
The loss of unemployment benefits isn't used in the calculation of the unemployment rate.
That's the whole point......
When one loses unemployment benefits they are no longer a factor in the when it comes to the unemployment equation...
It's almost like they fall into a black hole statistically..
They still factor into the equation.
It's based on whether you have looked for work, not whether your benefits ended.
Some countries base their estimates of total unemployment on the number of persons filing claims for or receiving UI payments or the number of persons registered with government employment offices as available for work. These data are also available in the United States, but they are not used to measure total unemployment because they exclude several important groups. To begin with, not all workers are covered by UI programs. For example, self-employed workers, unpaid family workers, workers in certain not-for-profit organizations, and several other small (primarily seasonal) worker categories are not covered.
In addition, the insured unemployed exclude the following:
1. Unemployed workers who have exhausted their benefits
2. Unemployed workers who have not yet earned benefit rights (such as new entrants or reentrants to the labor force)
3. Disqualified workers whose unemployment is considered to have resulted from their own actions rather than from economic conditions; for example, a worker discharged for misconduct on the job
4. Otherwise eligible unemployed persons who do not file for benefits
Because of these and other limitations, statistics on insured unemployment cannot be used as a count of total unemployment in the United States. Indeed, during 2008, only 36 percent of the total unemployed received UI benefits. The weekly data on UI claims do have important uses, however, and provide a timely indicator on labor market conditions.
How the Government Measures Unemployment