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Which statement is false as it regards measurement of unemployment :

a) part time workers are considered fully employed.
b) discouraged workers must be looking for employment for two years before they drop out of the labor force.
c) residents under the age of 16 or full time students or institutionalized are not part of the work force.
d) the unemployment rate is the total number unemployed divided by the labor force times 100.

User Neisha
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1 Answer

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Final answer:

Statement (a) is false as part-time workers are not considered fully employed in the measurement of unemployment. The other statements (b) and (c) are true, while statement (d) is the correct representation of the calculation of the unemployment rate.

Step-by-step explanation:

In regard to the measurement of unemployment, statement (a) is false. Part-time workers are considered employed, not fully employed. The classification of fully employed refers to individuals who are working the number of hours they desire or need. Part-time workers who are seeking full-time employment are still considered employed, but they are not fully employed because they are not working the desired number of hours.

On the other hand, statement (b) is true. Discouraged workers are individuals who have stopped actively looking for employment because they believe there are no job opportunities available for them. They drop out of the labor force and are no longer counted as unemployed.

Statement (c) is also true. Residents under the age of 16, full-time students, and institutionalized individuals are not considered part of the workforce. They are not eligible or available for employment, thus they are excluded from labor force calculations.

The correct statement regarding the measurement of unemployment is (d) – the unemployment rate is calculated by dividing the total number of unemployed individuals by the labor force and multiplying by 100. This rate is commonly used to track and analyze the state of unemployment in an economy.

User Corydoras
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