2. Discouraged workers Which of the following statements correctly describe disc

Question

2. Discouraged workers Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check all that apply. They are employed workers who want to earn higher wages. quitting. They are counted as part of the labor force by the Bureau of Labor Statistics They have given up on looking for a job. The following table contains U.S. employment information from December 2010 Civilian Population (Persons 16 years old and over) 238,889,000 Employed Unemployed Discouraged (Persons) 139,206,000 14,485,0001,318,000 (Persons) (Persons)

Explanation / Answer

Ans:

1) They have given up on looking for a job

A discouraged worker is a individual who has given up on looking for a job or not succeded in find a job.

2)

Labor force = employed + unemployed

   = 139,206,000 + 14,485,000

   = 153691000   

Official unemployment rate = Unemployed / Labor force

= 14,485,000 / 153691000

   = 0.094 or 9.4%

U-4 measure of labor underutiization = (14,485,000 + 1,318,000) / (153691000 + 1,318,000)

   = 15803000 / 155009000

   = 0.102 or 10.2%

3) Increase

If discouraged workers are included in the official unemployment rate the unemployment rate increases.

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