40% of Unemployed have Quit Looking for Jobs

http://www.cnbc.com/id/102694868

Unemployed are simply giving up...A new survey says four in ten people without jobs have given up looking.

At a time when 8.5 million Americans still don't have jobs, some 40 percent have given up even looking.
The revelation, contained in a new survey Wednesday showing how much work needs to be done yet in the U.S. labor market, comes as the labor force participation rate remains mired near 37-year lows.
A tight jobs market, the skills gap between what employers want and what prospective employees have to offer, and a benefits program that, while curtailed from its recession level, still remains obliging have combined to keep workers on the sidelines, according to a Harris poll of 1,553 working-age Americans conducted for Express Employment Professionals. 

Hence the reason for the 5% Unemployment rate. See in the Unicorn Utopia world of the Government, if you are no longer looking for a job you are no longer accounted for, therefore  in the 
Unicorn Utopia world  the Government assumes you  have found gainful employment. And that is how the numbers are gamed, of course they're always gamed in the favor of positivity ( Must make the Dear Leader shine ). Then there's the whole birth rate death model ( scam ) but that's another story for another day.