Final answer:
College graduates actively seeking employment but unable to find work are classified as unemployed. The term 'hidden unemployment' refers to those who are underemployed or seeking more suitable job positions.
Step-by-step explanation:
When individuals have graduated from college and begin to look for a job, they are classified as unemployed if they do not currently have a job, are available to work, and have actively sought employment within the past four weeks. This classification comes from the U.S. Bureau of the Census used to calculate the U.S. unemployment rate, which divides the adult population into categories of employed, unemployed, or not in the labor force.
However, within the category of employed, there exists a phenomenon known as hidden unemployment. This term includes people who may be working part-time or in temporary jobs while seeking full-time, permanent positions, as well those who are underemployed, such as a finance graduate working as a sales clerk.