From College News - Thousands of workers have stopped job searching, keeping them from being included in the unemployment rate.

September saw a reduction in the unemployment rate, yet the reason for this isn’t that people are finding jobs but that they have stopped looking.  The Labor Department reported recently that 600,000 out of work people have given up their search.

Unemployment was down in 59 percent of the 380 metro areas polled.  Workers that are not currently looking for work are not counted in the unemployment rate and many workers have at least temporarily ceased looking.

As the economy continues its slow recovery in the next several months, more people will resume their search and the unemployment rate could actually rise again. 

Analysts at IHS Global Insight predict that unemployment rates will be pretty much the same at the end of 2010 as they are today.  The job market’s recovery is expected to be slower than the general economy’s recovery. They predict that unemployment rate to not fall below 8 percent until the end of 2012.

Areas with a high percentage of manufacturing and housing jobs have been and will continue to suffer the highest unemployment rate.  The metro area with the highest rate is currently Detroit, Michigan which is at 17.3%.  Detroit’s staggeringly high rate is mainly caused by the collapse of the auto industry in the area.

By Heather Linich