The official unemployment rate reported by the government may tend to understate the amount of unemployment because it:

Question

Quizplus · Accepted Answer

The official unemployment rate reported by the government only includes individuals who are actively seeking employment but unable to find a job. This excludes individuals who have become discouraged and stopped looking for work. Therefore, the official unemployment rate tends to understate the amount of unemployment as it does not account for discouraged workers.

The Official Unemployment Rate Reported by the Government May Tend