Final answer:
The individual described, who is not actively seeking work due to embarrassment in the interview process, is classified as 'not in the labor force' according to the Bureau of Labor Statistics.
Step-by-step explanation:
According to the U.S. Bureau of Labor Statistics, a person who is not working and not actively looking for work in the previous four weeks is classified as not in the labor force.
In the scenario described, the individual is not actively seeking employment due to the embarrassment of revealing their inability to read during an interview process.
Therefore, even though they would accept a job if offered, they are not currently looking for one, which places them in the not in the labor force category.