The Bureau of Labor Statistics classifies people who would like to work but have given up looking for a job as
A)unemployed.If they were classified as out of the labor force,the reported unemployment rate would be larger.
B)unemployed.If they were classified as out of the labor force,the reported unemployment rate would be smaller.
C)out of the labor force.If they were classified as unemployed,the reported unemployment rate would be larger.
D)out of the labor force.If they were classified as unemployed,the reported unemployment rate would be smaller.

Question

Quizplus · Accepted Answer

People who would like to work but have given up looking for a job are considered as out of the labor force by the Bureau of Labor Statistics. If they were classified as unemployed, the reported unemployment rate would be artificially larger, as they would be included in the numerator of the unemployment rate equation (unemployed individuals / labor force).

The Bureau of Labor Statistics Classifies People Who Would Like