Official unemployment statistics Multiple Choice 1. include cyclical and structural unemployment but not frictional unemployment. 2. overstate unemployment because workers who are involuntarily working part time are counted as being employed. 3. understate unemployment because discouraged workers are not counted as unemployed.

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Haylee Mahoney

31 July, 17:13

Official unemployment statistics Multiple Choice 1. include cyclical and structural unemployment but not frictional unemployment. 2. overstate unemployment because workers who are involuntarily working part time are counted as being employed. 3. understate unemployment because discouraged workers are not counted as unemployed.

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Hamilton · Answer 1

Official unemployment statistics (3) understate unemployment because discouraged workers are not counted as unemployed.

Explanation:

The only official definition of unemployment is that - people who are jobless, actively seeking work, and available to take a job, are said to be unemployed.

The official unemployment rate of a nation can be defined as the number of unemployed as a percentage of the labor force (the sum of the employed and unemployed)

Discouraged workers are those workers who are not actively searching for a job, they are considered nonparticipants in the labor market and that is why, they are neither counted as unemployed nor included in the labor force

So the statement that Official unemployment statistics is said to be (3) understate unemployment because discouraged workers are not counted as unemployed.