Rupert is collecting unemployment insurance benefits. To continue to receive his benefits, he must be looking for work. Because he'd like to continue collecting benefits rather than take a job, he applies at places that are unlikely to hire him. People like Rupert make the reported unemployment rate less than it would otherwise be.

Question

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People like Rupert, who are actively applying for jobs (even if selectively), are counted as part of the labor force and therefore contribute to the unemployment rate, not reduce it. The reported unemployment rate includes individuals actively seeking employment.

Rupert Is Collecting Unemployment Insurance Benefits