Question

How would it affect the unemployment rate if the Bureau of Labor Statistics counted as unemployed both​ (1) discouraged workers and​ (2) people who work​ part-time but would prefer to work​ full-time? A. The unemployment rate would decrease. B. The unemployment rate would increase. C. The annual unemployment rate would have been close to 50 percent in the last decade. D. The unemployment rate would remain the same because those people are already counted as unemployed.

Answer 1

B. The unemployment rate would increase.

Step-by-step explanation:

Discouraged workers are those of legal employment age who haven't found employment over a period of time and as such are not currently seeking employment. They can be said to have given up searching for employment.

Discouraged workers are usually not listed as unemployed or as part of the labor force.

Part-time workers are classified as employed and part of the labor force.

Unemployment rate = (Number of unemployed/ Total labor force) × 100

Therefore counting discouraged workers and part-time workers as unemployed, would increase the number of unemployed people and as a result, increase the unemployment rate.