Excluding discouraged workers from the official unemployment rate may cause the official rate to Understate the true extent of underemployment.
What happens when they are reclassified as discouraged workers?
(1) official unemployment rate= unemployed/(employed + unemployed)
= 6197000 / 155604000 + 6197000 * 100
= 3.83%
(2) U-4 unemployment rate= (unemployed +discouraged) /(employed +unemployed+ discouraged)
=6197000+ 434000 / 155604000+ 6197000 + 434000 * 100
= 4.09%
Excluding discouraged workers from the official unemployment rate may cause the official rate to Understate the true extent of underemployment.
To learn more about the unemployed, refer to:
https://brainly.com/question/3876987
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