If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be baised upward.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force (which includes both employed and unemployed individuals actively seeking employment). If some individuals who report being unemployed are not actually trying to find a job, then they should not be included in the total labor force and the unemployment rate will be skewed upward.

If People Who Report Being Unemployed Are Not, in Fact