People who report being unemployed but who, in fact, are working for "under the table" pay to avoid taxes on their earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.

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These individuals are technically employed because they are working, even if it's not officially recognized due to the nature of their payment. Their inclusion in unemployment statistics, despite actually working, inaccurately inflates the reported unemployment rate.

People Who Report Being Unemployed but Who, in Fact, Are