Question

Excluding discouraged workers from the official unemployment rate may cause the official rate to the true extent of underemployment.

Answer 1

Excluding discouraged workers from the official unemployment rate may cause the official rate to Understate the true extent of underemployment.

What happens when they are reclassified as discouraged workers?

• The measured unemployment rate will decrease if unemployed people give up.
• When this occurs, the measured unemployment rate will momentarily increase. They will once more be listed as unemployed, which is why.
• Because there are no discouraged employees in the labor market actively looking for a job, the labor force participation rate would fall if employed people were reclassified as discouraged workers.

(1) official unemployment rate= unemployed/(employed + unemployed)

= 6197000 / 155604000 + 6197000 * 100

= 3.83%

(2) U-4 unemployment rate= (unemployed +discouraged) /(employed +unemployed+ discouraged)

=6197000+ 434000 / 155604000+ 6197000 + 434000 * 100

= 4.09%

Excluding discouraged workers from the official unemployment rate may cause the official rate to Understate the true extent of underemployment.

To learn more about the unemployed, refer to:

brainly.com/question/3876987

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