The unemployment rate might be understating unemployment because of:

Question

Quizplus · Accepted Answer

Underemployment occurs when workers are employed in jobs that do not fully utilize their skills and abilities, and they are not earning enough to make a decent living. The unemployment rate does not take into account underemployed workers, which means that the rate is understating the true level of unemployment in the economy. This is why underemployment is often referred to as "hidden unemployment."

The Unemployment Rate Might Be Understating Unemployment Because Of