Asked by Jackson Caleb on Jun 19, 2024
Verified
Because of discouraged workers,the unemployment rate
A) tends to behave very erratically.
B) overstates the unemployment problem.
C) understates the unemployment problem.
D) None of the choices are correct.
Discouraged Workers
Individuals who are not actively seeking employment due to believing no jobs are available for them or none that match their skills.
Unemployment Rate
The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment and willing to work.
- Understand how the unemployment rate is calculated and the limitations of official statistics.
Verified Answer
AR
Alaisaj RichardsonJun 20, 2024
Final Answer :
C
Explanation :
Discouraged workers are those who have given up on finding a job and have stopped actively looking for work. They are not included in the official unemployment rate calculation, and therefore the unemployment rate understates the true unemployment problem.
Learning Objectives
- Understand how the unemployment rate is calculated and the limitations of official statistics.