Because discouraged workers are not considered unemployed,the unemployment rate may be biased downward.

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Discouraged workers are those who have given up on actively seeking employment but are still able and willing to work. As they are not considered part of the labor force, they are not included in the unemployment rate calculation. This leads to an underestimation of the true unemployment rate, making it biased downward.

Because Discouraged Workers Are Not Considered Unemployed,the Unemployment Rate May