In calculating the unemployment rate, "discouraged" workers who are not actively seeking employment are:
A) Excluded from the labor force
B) Included as part of the unemployed
C) Treated the same as part-time workers
D) Used to determine the size of the labor force

Question

Quizplus · Accepted Answer

Discouraged workers who are not actively seeking employment are not considered to be a part of the labor force and are therefore excluded from the calculation of the unemployment rate. This is because the unemployment rate only measures the percentage of people who are actively seeking employment but are unable to find a job.

In Calculating the Unemployment Rate, "Discouraged" Workers Who Are Not