When there are part-time workers who wish to work full-time, the official unemployment rate
A) rises when these workers find full-time jobs.
B) falls when these workers find full-time jobs.
C) overstates the unemployment problem.
D) understates the unemployment problem.
E) counts these workers as discouraged.

Question

Quizplus · Accepted Answer

The official unemployment rate only counts those who are actively seeking full-time employment but cannot find it. Therefore, it does not take into account part-time workers who want to work full-time. When these workers find full-time jobs, they are no longer counted as unemployed, but they were still experiencing underemployment before finding full-time employment. Thus, the official unemployment rate understates the true unemployment problem because it does not capture the full extent of underemployment.

When There Are Part-Time Workers Who Wish to Work Full-Time