Define and give examples of the terms unemployment, underemployment, and discouraged workers.

Question

What will be an ideal response?

Answer 1

Correct answer varies but should include unemployment defined as being economically active and in the labor force (e.g., not retired), able and willing to work, and seeking employment but unable to find a job. Many people in the U.S. must also cope with the problem of underemployment. This involves: (a) being in jobs that are not up to one's training and ability, such as a college professor driving a taxi at night; (b) being an involuntary part-time worker; that is, working part-time because one cannot find full-time work; or (c) working in jobs that are not fully occupying, such as in a seasonal industry like agriculture where work slows down dramatically or disappears in the off-season. The statistics on unemployment understate the problem of lack of work because they deal only with those who are in the labor force and who are actively seeking work. Another large group of people who are marginally attached to the workforce includes discouraged workers. To be categorized as such, people must have sought work within the last year or since their last job ended, if that was less than a year previous, and must have not sought work in the last four weeks. Other reasons to be considered marginally attached to the labor force include being prevented from working because of family responsibilities or because of a lack of transportation.