Asked by Bella Carranza on Apr 24, 2024
Verified
Official unemployment statistics
A) understate unemployment because individuals receiving unemployment compensation are counted as employed.
B) understate unemployment because "discouraged workers" are not counted as unemployed.
C) include cyclical and structural unemployment,but not frictional unemployment.
D) overstate unemployment because workers who are involuntarily working part time are counted as being employeD.
Discouraged Workers
Discouraged Workers are individuals who are not actively seeking employment due to believing no jobs are available for them or there are other barriers to employment.
Unemployment Statistics
The data and analysis regarding the percentage of the labor force that is jobless and actively seeking employment.
- Absorb the method of calculating the unemployment rate and discern the deficiencies of officially sanctioned statistics.
Verified Answer
DG
Denaya GlantonMay 02, 2024
Final Answer :
B
Explanation :
"Discouraged workers" who have given up looking for work are not counted as unemployed in official unemployment statistics. This means that the true unemployment rate is likely higher than what is reported.
Learning Objectives
- Absorb the method of calculating the unemployment rate and discern the deficiencies of officially sanctioned statistics.