If people who report being unemployed are not, in fact, trying hard to find a job, then the reported unemployment rate will be biased upward.

Question

Quizplus · Accepted Answer

The reported unemployment rate includes those actively seeking employment. If people claim to be unemployed without genuinely seeking work, they are still counted, thus inflating the unemployment rate beyond those truly seeking employment.

If People Who Report Being Unemployed Are Not, in Fact