Julia got fired from her magazine publishing job in New York City about a year ago. She received unemployment compensation for six months, during which time she actively looked for a new position. After that time, Julia unfortunately had to move back in with her parents in Iowa at which time she stopped looking for work. What is Julia's present unemployment status?
A)Julia is a discouraged worker and is not counted as unemployed.
B)Julia is underemployed.
C)Julia is unemployed.
D)Julia is on a leave of absence.

Question

Quizplus · Accepted Answer

In this situation, Julia is a discouraged worker and is not counted as unemployed.
Key Takeaway: Because Julia is not actively looking for a position, she is considered to be a discouraged worker. Discouraged workers are not included in labor statistics because they are difficult to count. They are, therefore, out of the labor force. Although Julia is technically unemployed by definition of the word, in economic terms, she does not count.

Julia Got Fired from Her Magazine Publishing Job in New