Oﬃcial unemployment statistics
A) understate unemployment because individuals receiving unemployment compensation are counted as employed.
B) understate unemployment because discouraged workers are not counted as unemployed.
C) include cyclical and structural unemployment but not frictional unemployment.
D) overstate unemployment because workers who are involuntarily working part time are counted as being employed.

Question

Quizplus · Accepted Answer

Discouraged workers, who have given up looking for work, are not counted as unemployed in official unemployment statistics, thus understating the actual unemployment rate. The other options are incorrect - individuals receiving unemployment compensation are still considered unemployed, both cyclical and structural unemployment are included in official statistics, and involuntary part-time workers are also counted as employed.

Oﬃcial Unemployment Statistics