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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. They have not looked for a job in 4 weeks (or longer), but they would like a job and are available for work. They have given up on looking for a job. They are dissatisfied with their current jobs and are considering quitting. The following table contains U.S. employment information from January 2011.
The Bureau of Labor Statistics has several measures of joblessness in addition to the official unemployment rate. One alternative is the U-4 measure of labor underutilization, which is calculated as follows:
Fill in the following table by calculating the official unemployment rate and the U-4 measure of labor underutilization.
The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy. If the Bureau of Labor Statistics were to include discouraged workers in the official unemployment rate, the reported unemployment rate would. |
Discouraged workers are those who have not looked for a job in 4 weeks (or longer ) but they would like a job and are available for work , And those who have given up on looking for a job. Hence , option(B) and (C) are correct.
Official unemployment rate = [(Unemployed/ Employed + Unemployed)]100 =[13,863,000/ (139,323,000+ 13,863,000]100= (13,863,000/ 153,186,000)100= 9.049%
U-4 measure of unemployment rate = [(Unemployed+discouraged workers )/ (unemployed +employed+discouraged workers)]100= [(13,863,000+993,000)/ (153,186,000+993,000)]100 = (14,856,000/ 154,179,000)100= 9.635%.
If the Bureau of Labor statistics were to include discouraged workers in the official unemployment rate ,the reported unemployment rate would increase.
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