Final answer:
When unemployed workers are reclassified as discouraged workers, the official unemployment rate decreases because the denominator (labor force) decreases while the numerator (number of unemployed) remains the same.
Step-by-step explanation:
When unemployed workers are reclassified as discouraged workers, it means that they are no longer considered part of the labor force. The labor force is defined as the total number of employed and unemployed individuals actively seeking employment. Therefore, when discouraged workers are excluded from the labor force, the official unemployment rate decreases because the denominator (labor force) decreases while the numerator (number of unemployed) remains the same.
For example, if the Bureau of Labor Statistics were to include discouraged workers in the official unemployment rate and they accounted for a significant portion of the labor force, the reported unemployment rate would be higher than the current rate because the denominator would increase.