In August 2012,40 percent of unemployed workers had been unemployed for 6 months or more.This long-term unemployment is of particular concern because
A) long-term unemployment is the most costly type of unemployment.
B) the U-3 unemployment rate no longer includes these workers in the measurement since they are long-term unemployed.
C) the employment-to-population ratio no longer includes these workers in the measurement since they are long-term unemployed.
D) the labor force participation rate no longer includes these workers in the measurement since they are long-term unemployed.

Question

Quizplus · Accepted Answer

Long-term unemployment is the most costly type of unemployment because it not only affects individuals and their families but also has negative effects on the overall economy. It leads to a decrease in consumer spending, diminishes skills and experience of workers, and leads to an increase in social welfare programs' expenditures.

In August 2012,40 Percent of Unemployed Workers Had Been Unemployed