Question

cite three reasons why the official unemployment rate may be a flawed measure of joblessness

Answer 1

unemployment rate is a flawed measure of joblessness bcoz it fails to incorporate all those people ,who doesnt have a job.

1) it fails to capture the discouraged workers,

Discouraged workers are those who are not included in the Labor force & those who have not looked for a job since last 4 weeks.

Thus temporarily have stopped to look for a job. Though they are able to work , but believe that they can't find a job, hence they are overlooked by official unemployment rate.

2) it doesn't include marginally attached workers;

marginally attached worker is one who wants a job, has looked for a job sometime in the past 12 months, but not currently actively looking for work.

these workers might have taken a gap due to various issues, like to get more education to strengthen their resume, but not included in labor force

3) underemployed workers , who have part time or temporary jobs are combined with full time workers in labor force.

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