Which indicators of conditions in the labor market are sensitive to measurement errors of the labor force?

Question

Quizplus · Accepted Answer

The unemployment rate and the labor force participation rate are both sensitive to measurement errors in the labor force. For example, if someone is discouraged and stops looking for work, they may not be counted as unemployed and therefore not included in the labor force, thus leading to an artificially lower unemployment rate. Similarly, if someone who was previously not considered part of the labor force decides to enter the workforce, they may be counted as employed, thus leading to an artificially higher labor force participation rate. The employment-to-population ratio is also sensitive to measurement errors, but to a lesser extent than the other two indicators.

Which Indicators of Conditions in the Labor Market Are Sensitive