Does unemployment statistics account for business owners that were put out of business and are currently unemployed?
Their statistics are from those who have jobless claims with their state’s EDD. And economists have been pointing out that would exclude folks such as yours truly who is marginally employed (But that counts! No it doesn’t! Yes it does! Oh go pay a bill!) Anyway, yes, they figure that “10% unemployment” is actually 12%-13%.
It depends on the type of business and the recognition that unemployment compensation doesn’t only come from the ESC. For example, parachutes and severance packages include both compensation and benefits for those who have been laid off or have written employment contracts to secure their welfare after they’re gone (or as objects of attraction from employers). On the flip side of the coin, business structure dictates how an owner is listed on the payroll. If he/she is considered an employee and receives a wage, such as with an S-corporation, he/she does usually qualify for unemployment benefits from the state, depending on the state’s requirements. It’s important, in these cases, that the owner or partner pays unemployment taxes on himself. Some may consider not paying in to be creating a wider profit margin up front, which is true; however, doing so creates leaks in the business shelter (regarding the general 80% failure rate of new businesses in the US). If the business goes under, t
