Mike recently lost his job as a construction worker.During this unemployment spell,Mike actively searched for work but recently took a job that paid cash "under the table" while he continued to search and collect unemployment payments.Mike would be considered __________ by the Bureau of Labor Statistics but his inclusion would cause the officially reported unemployment rate to __________ the true unemployment rate.

Question

Quizplus · Accepted Answer

Mike is considered unemployed since he lost his job and is actively searching for work. However, his inclusion in the unemployment rate would cause an overestimate since he is working "under the table" and not being officially counted as employed.

Mike Recently Lost His Job as a Construction Worker