The official unemployment rate may not reflect the true state of unemployment because:
A)part-time employees who want to work more hours are treated the same statistically as those who hold full-time jobs.
B)some individuals who want to work may become discouraged and cease actively looking for work.
C)workers laid off from their jobs and looking for new ones are not counted among the unemployed.
D)(a) and (b) only.

Question

The official unemployment rate may not reflect the true state of unemployment because:
A)​part-time employees who want to work more hours are treated the same statistically as those who hold full-time jobs.
B)​some individuals who want to work may become discouraged and cease actively looking for work.
C)​workers laid off from their jobs and looking for new ones are not counted among the unemployed.
D)​(a) and (b) only.

Quizplus · Accepted Answer

Part-time employees who want to work more hours and individuals who have become discouraged and have stopped actively looking for work are not included in the official unemployment rate. Additionally, workers who have been laid off and are actively searching for new jobs are not accurately represented in the official unemployment rate. Thus, factors (a) and (b) contribute to the inaccuracy of the official unemployment rate.

The Official Unemployment Rate May Not Reflect the True State