Why might the official unemployment rate NOT reflect the true state of unemployment?
A)Some individuals who want to work may become discouraged and cease actively looking for work.
B)Part-time employees are counted as unemployed.
C)Retired workers are considered unemployed.
D)Workers who are laid off from their jobs but looking for new ones are not counted among the unemployed.

Question

Quizplus · Accepted Answer

The official unemployment rate only takes into account those who are actively seeking employment. Individuals who have become discouraged and stopped actively looking for work, but still want a job, are not counted in the official rate. This leads to an underestimation of the true state of unemployment.

Why Might the Official Unemployment Rate NOT Reflect the True