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5. How "discouraged workers" are treated in calculating the unemploymentrate? What is its impact on official unemployment statistics?

Answer»

ANSWER:

Since discouraged workers are not actively searching for a JOB, they are considered nonparticipants in the LABOR market—that is, they are neither counted as unemployed nor included in the labor force. ... As a result, the U-4 RATE is always higher than the official unemployment rate.



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