Question
3. Discouraged workers and involuntary part-time workers Simply counting the number of unemployed workers will net necessarily give the Bureau of Labor Statistics (DL5) the most accurate indication of the extent of underemployment in the economy. Some part time warkers wil be counted s employed even ithey'd ike to work fuil time. Furthermare, some lobless workers wil not qualify as unemployed because they have glven up on their job search, frustrated with ther inabity to find work. Fortunately, the BLS can use the information provided in the household survey to classify workers in ways that account for these types of underemployment The BLS clessifies those who work part time because they cannat fnd full time employment as inveluntary but has not searched for emplbyment during the previous four weeks because they believe their job search is currently futtle. Dy keeping track of discouraged and involuntary part-time warkers, the BLS gets a clearer picture of underemployment than if it looked only at the number of unemployed workers Which of the folowing statements camectly describe discouraged workers? Check all that apply They would like to have a job. They are employed nurkers who not to ern higher wages They ore part-time-orkers "ha mart to work rull-time. They are not in the labor force. Consider a hypothetical economy in which the labor force consists ot 100 people. Of those, 85 people are employed full-tine and 15 people are unemployed. The economy follows the same conventions as the US. Bureau of Labor Statistics (BLS) in computhg its employment figures. The unemployment rate is simply the number of unemplayed
Explanation / Answer
1. They would like to have a job
2. They are n't in labor force.
Scenerio A = unemployed/Labour force = 15/100*1000 = 15%
Scenerio B = unemployed/Labor force = 36/100*100 = 36%
Scenerio A underestimate the true extent.
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