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.

a. They are full-time workers who would like to work only part-time.
b. They are counted as part of the labor force by the Bureau of Labor Statistics.
c. They have given up on looking for a job.
d. They are employed workers who want to earn higher wages.

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Answer:

The correct answer is c. They have given up on looking for a job.

Explanation:

In economics, a discouraged portion of the labor force that is unemployed and that, due to discouragement, chooses to abandon the search for a job, is known as discouraged employees. This situation occurs to a large extent in economies where the unemployment rate is very high, and likewise in markets where remuneration is usually very precarious compared to the opportunities offered. Option C is the one that best exemplifies this definition, since the others are employee situations with a different definition.

Official unemployment rate

often measure of labor under utilization. It often measures of joblessness in the economy.

Discouraged workers are people who have

  • they have given up on looking for a job

Unemployment rate often tells the share of unemployed people in the total labor force.

Discouraged workers are individuals who do not have a job, and they looked for a job at a point in time but then became discouraged and stopped searching.

Conclusively, Discouraged workers are not unemployed as counted by the official unemployment rate, and they are out of the labor force.

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