The unemployment rate does not reflect the true extent of the unemployment problem. Which of the following groups is not counted as unemployed in the official unemployment statistics?
A) the underemployed and the cyclically unemployed
B) the underemployed and discouraged workers
C) discouraged workers and the frictionally unemployed
D) the frictionally unemployed and the structurally unemployed
E) the cyclically unemployed and the frictionally unemployed

Question

Quizplus · Accepted Answer

The underemployed and discouraged workers are not counted as unemployed in the official unemployment statistics. The other options include groups that are typically recognized as unemployed by official statistics. The cyclically unemployed are those who are out of work due to macroeconomic factors such as a recession, while the frictionally unemployed are those who are temporarily between jobs. The structurally unemployed are those whose skills or location are mismatched with available jobs. Finally, discouraged workers are those who have given up actively seeking employment.

The Unemployment Rate Does Not Reflect the True Extent of the Unemployment