Part-time workers are counted as:
A)unemployed and therefore the official unemployment rate tends to overstate the level of unemployment.
B)unemployed and therefore the official unemployment rate tends to understate the level of unemployment.
C)fully employed and therefore the official unemployment rate tends to overstate the level of unemployment.
D)fully employed and therefore the official unemployment rate tends to understate the level of unemployment.

Question

Quizplus · Accepted Answer

Part-time workers who want full-time work are considered as "underemployed" rather than "unemployed" in official statistics. As a result, the official unemployment rate tends to underestimate the level of unemployment by excluding these workers who are willing and able to work more hours but cannot find full-time employment. Therefore, D is the correct answer.

Part-Time Workers Are Counted As