Why doesn't the US count people who are looking for work as unemployed? For example, the...

Why doesn't the US count people who are looking for work as unemployed? For example, the unemployment rate reported during the COVID-19 period, 14.7%, is lower than the real unemployment rate predicted by economists.

Solutions

Expert Solution

The US does not count people who are looking for work as unemployed because, technically, they should be actively looking for a job currently.

There are many who are looking for a job but are not currently available for work and there are many who are looking for a job but not actively. Due to coronavirus pandemic, many people without any job have postponed their wish to start looking for a job until at least June 15.

The Labor Department publishes six measures of unemployment. The main one is technically called U-3, and to qualify one needs to be both out of work and looking for a job to be counted. People have got themselves locked to ensure they do not fall victim to coronavirus attack. Also, they responded to the complete lockdown announcement of the US government. Hence, they are neither the part of the labor force nor the part of the unemployed lot.

Thus, unemployment rate reported during the COVID-19 period, 14.7%, is lower than the real unemployment rate predicted by economists

Rahul Sunny answered 2 months ago

Next > < Previous

Related Solutions

Suppose an economy has 10,000 people who are not working but looking and available for work...

Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working. What is its unemployment rate? Now suppose 4,000 of the people looking for work get discouraged and give up their searches. What happens to the unemployment rate? Would you interpret this as good news for the economy or bad news? Explain.

Today the United States has unemployed people who began as cyclically unemployed during the recession but...

Today the United States has unemployed people who began as cyclically unemployed during the recession but have since become structurally unemployed because their skills have become obsolete. How important is the idea of remaining up-to-date on training and skills in the work force? Is there a certain industry that requires skills to be current?

In Alexland there are 70,000 people employed and 10,000 people who are unemployed. Of those 10,000...

In Alexland there are 70,000 people employed and 10,000 people who are unemployed. Of those 10,000 6,000 are structurally unemployed and 1,000 are frictionally unemployed. This economy would be described as: In a recession In an expansion Operating at full employment Having an economic boom

QUESTION 6 Unemployed people don't work, but having idle workers

QUESTION 6Unemployed people don't work, but having idle workersfacilitates matching workers's skills to the tasks to be performed on jobsencourages worker exploitationis a sure sign of demand deficiencyis a symptom of technology replacing workersQUESTION 7With general training and employment at will, wages ________ at a ________ rate over a worker's career.increase; increasingincrease; decreasingdecrease; increasingdecrease; decreasingQUESTION 8Under an unemployment insurance system that uses no experience rating, the cost to a firm in increased unemployment insurance taxes of laying off a worker...

Suppose that people without jobs who were looking for work stop doing so. Other things the...

Suppose that people without jobs who were looking for work stop doing so. Other things the same, this makes the labor force will remain the same and the unemployment rate falls both the labor force and the unemployment rate remains the same both the labor force and the unemployment rate fall the labor force will fall while the unemployment rate remains the same

1. Are all people over 18 who are not working counted as unemployed by the Bureau...

1. Are all people over 18 who are not working counted as unemployed by the Bureau of Labor and Statistics? Explain. 2. Is the decrease in the unemployment rate always a good thing? Explain. 3. Is zero unemployment a desirable outcome? Explain.

1) Why China doesn't sell US bonds owned by the Chinese government? Or why not return...

1) Why China doesn't sell US bonds owned by the Chinese government? Or why not return them to America and get their money back? 2) In the event of a depression / or economic stagnation, what is the best way for the government to revive the economy? by using government expenses or using taxes? And why?

8. A country introduces more generous benefits paid to people who are unemployed. Which of the...

8. A country introduces more generous benefits paid to people who are unemployed. Which of the following statements about the labour market is not correct? (a) The equilibrium real wage will fall. (b) Unemployed people will spend longer on average looking for jobs. (c) The equilibrium unemployment rate will increase. (d) The size of the labour force will increase. 9. Assume the central bank sets interest rates with the goal of achieving an inflation target. Which of the following statements...

QUESTION 1 The best example of a "frictionally unemployed" worker is one who reduces productivity by...

QUESTION 1 The best example of a "frictionally unemployed" worker is one who reduces productivity by causing friction in a business. is laid off during a recessionary period in the economy. is in the process of voluntarily switching jobs. is discouraged and not actively seeking work. 4 points QUESTION 2 Full-Time Employed = 80 Part-Time Employed = 25 Unemployed = 15 Discouraged Workers = 5 Members of Underground Economy = 6 Consumer Price Index = 110 Refer to the given...

Why Newtonian mechanics doesn't work at velocities close to that of the speed of light? I...

Why Newtonian mechanics doesn't work at velocities close to that of the speed of light? I know that mass tends to become infinite at v=c but why does it fail if v is close to c but not exactly c?

Subjects