People who report being unemployed but who,in fact,are not trying hard to find a job are really not in the labor force and therefore cause the reported unemployment rate to be higher than it would otherwise be.

Question

Quizplus · Accepted Answer

This phenomenon is known as "discouraged workers" and they are not included in the labor force, therefore not contributing to the unemployment rate. However, if they were included in the calculations, the unemployment rate would be higher.

People Who Report Being Unemployed but Who,in Fact,are Not Trying