The official unemployment rate may understate the true rate of unemployment because of:

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The official unemployment rate only includes individuals who are actively seeking employment but can't find a job. Discouraged workers who have given up looking for work are not included in the official rate. Therefore, the true rate of unemployment may be higher than the official rate suggests. Increases in worker productivity (A) and workers having more than one job (C) would not affect the official rate of unemployment, and changes in wage rates increasing unemployment (D) is not a common phenomenon in the labor market.

The Official Unemployment Rate May Understate the True Rate of Unemployment