Unit 5: Unemployment and the Cost of Living

Economics
Tutor: None Selected Time limit: 1 Day

Official unemployment rate is an imperfect measure of the rate of unemployment (joblessness). Give examples on how the definition of unemployment rate overstates or understates the number of jobless people in the economy.

Jul 14th, 2015

Thank you for the opportunity to help you with your question!

The unemployment rate may be understated due to discouraged and part time workers. The rate cannot measure intent of workers. Discouraged workers might "want" to work, but they have demonstrated no effort to obtain employment, so they are placed in the "not in labour force" category. Part-time workers might "want" to work full time, but they are in fact working, and are thus placed completely in the "employed persons" category

The unemployment rate may be overstated due to unreported legal employment and unreported illegal employment.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 14th, 2015

What is your reference?


Jul 14th, 2015

What is your reference?


Jul 14th, 2015

http://www.investopedia.com/articles/economics/10/unemployment-rate-get-real.asp

and 

http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=unemployment+rate,+measurement+problems

Jul 14th, 2015

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