Why do some critics assert that the unemployment rate understates the unemployment problem?
A)A jobless person can claim to be looking for work even if he or she is not really interested in employment.
B)Involuntary part-time workers and discouraged workers are not included in unemployment statistics.
C)Labour unions may not cooperate fully in providing reliable unemployment information to Statistics Canada.
D)Workers temporarily laid off are included in the unemployment statistics.

Question

Quizplus · Accepted Answer

The unemployment rate only takes into account individuals who are actively seeking employment but unable to find it. This means that individuals who are working part-time involuntarily or have become discouraged and given up on the job search are not included in the unemployment statistics, leading to an understatement of the unemployment problem.

Why Do Some Critics Assert That the Unemployment Rate Understates