Because the official unemployment rate does not include discouraged workers, the actual degree of unemployment in the economy tends to be underestimated.

Question

Quizplus · Accepted Answer

Discouraged workers, who are not actively seeking employment due to various reasons such as believing no jobs are available for them, are not counted in the official unemployment rate, leading to an underestimation of the true level of unemployment in the economy.

Because the Official Unemployment Rate Does Not Include Discouraged Workers