Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?
A)People are pretending to look for work so that they can continue receiving EI benefits.
B)There are a large number of people working in the underground economy.
C)Many part-time employees would like to work full-time, but are unable to get the additional work.
D)Employees increase the number of hours they work overtime.

Question

Quizplus · Accepted Answer

The unemployment rate may underestimate true unemployment because it does not account for underemployment, where part-time workers desire full-time work but cannot find it.

Which of the Following Factors Might Cause the Unemployment Rate