“In the grey line, Nomura economists have adjusted the unemployment rate for the number of discouraged workers who have left the labor force and therefore count as unemployed in this alternative measure. (And yes, they do take into account demographic trends by age group that would influence those leaving, the largest of which is retiring baby boomers. So the right way to understand the alternative 10.3 per cent rate is that it includes those who have left the labor force but not those who, for structural reasons, would have left it anyways.)”
(H/T: The Enterprise Blog)
