Question

Official unemployment statisticsMultiple Choiceoverstate unemployment because workers who are involuntarily working part time are counted as being employed.include cyclical and structural unemployment but not frictional unemployment.understate unemployment because individuals receiving unemployment compensation are counted as employed.understate unemployment because discouraged workers are not counted as unemployed.

Answer 1

Answer:understate unemployment because discouraged workers are not counted as unemployed.

Explanation:

People who are no longer searching for jobs due to the fact that they have given up searching for employment are not considered under the official unemployment statistics because they are said to be only out of the labor force but truth is they are still unemployed people who are not receiving any income from anywhere.

This statistics considers those who are actively searching for employment for example people who have been let go from their jobs or new graduates who has not entered the labor force and all of these must be actively searching for employment to be considered under this statistics.