Cynthia is collecting unemployment insurance benefits. To continue to receive her benefits, she must be looking for work. However, she only applies at places where she is unlikely to be hired because she doesn't really want to work. People like Cynthia make the reported unemployment rate less than the true rate of unemployment.

Question

Quizplus · Accepted Answer

People like Cynthia are considered part of the labor force and unemployed, thus they contribute to the reported unemployment rate, not making it less than the true rate.

Cynthia Is Collecting Unemployment Insurance Benefits