week4.docx - The BLS considers a person to be unemployed if...

This preview shows page 1 - 2 out of 2 pages.

The BLS considers a person to be unemployed if he or she is in the adult population, did not work for pay in the previous week, and has actively looked for work during the preceding 4 weeks. By this definition, the BLS classifies Rosa as unemployed. Because Tim and Crystal are not actively seeking employment, they are not considered part of the labor force. Note that not being in the labor force is different from being unemployed. Once people leave the labor force, they are not counted when calculating the unemployment rate. Because Latasha is under the age of 16, she is not considered part of the adult population. Any jobless person who has not looked for work in the past 4 weeks is not in the labor force according to the Bureau of Labor Statistics (BLS). Some of these jobless people who are not in the labor force indicate that they'd like to have a job and are available for work. The BLS classifies such people as marginally attached workers. Discouraged workers are marginally attached workers who give a job-market-related reason for giving up on their job search . Typically, discouraged workers give up on their search because they feel that there are no current opportunities for them in the labor market. If discouraged workers were included in the official unemployment rate, the reported unemployment rate would rise. Excluding discouraged workers from the official unemployment rate may cause the official rate to understate the true extent of underemployment.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture