The official unemployment rate may not reflect the true state of unemployment because:
A)Some workers may go through the motions of looking for work to keep their unemployment benefits, but not actually be looking for work.
B)Some people who are working in the underground economy may be classified as unemployed.
C)Some may leave the labor force and go back to school only because job conditions are currently poor.
D)all of the above.

Question

The official unemployment rate may not reflect the true state of unemployment because:
A)​Some workers may go through the motions of looking for work to keep their unemployment benefits, but not actually be looking for work.
B)​Some people who are working in the underground economy may be classified as unemployed.
C)​Some may leave the labor force and go back to school only because job conditions are currently poor.
D)​all of the above.

Quizplus · Accepted Answer

All of the given options are correct reasons why the official unemployment rate may not reflect the true state of unemployment. Some workers may continue to search for work only to benefit from unemployment benefits while not actively looking for a job. Additionally, people working in the underground economy may not be counted as employed, even though they are generating income through their work. Lastly, people may leave the labor force and return to school or other activities due to the current job market conditions rather than the pursuit of a preferred education path.

The Official Unemployment Rate May Not Reflect the True State