Unemployment Rate for Labour Force Participation- myassignmenthelp

Question: Should discouraged workers be counted as part of the unemployment rate? Answer: Discouraged workers are not actively searching for a job but they are considered non participants in a labour market. That is they are neither counted as unemployed nor included in the labour force. But these categories of people are not counted in an unemployment rate as they are not looking for a job but they are capable enough to get employed. There are various opportunities for them in the market but they dont want to use them, as they have assumed that no jobs are available for them (Lee Parasnis, 2014). This is due to the lack of participation in the labour market. The measure of unemployment involves potential labour participants who are seeking for job but are not employed. It includes those people who are retired or they are in school or training programs or those who have stopped looking for change. Disgorged workers sometimes affect the unemployment rate due to the change in their mind-set. Thus they are considered as on the margin of labour force and they should not be i ncluded in an unemployment rate (Dunn, Haugen Kang, 2018). They are established in the statistics of Labour Force Participation as they have not searched for job from last few weeks and have assumed that no jobs are available for them. They are attacked in Unemployment insuranceU-5 and U-6 measures (Ravikumar Shao, 2014). They must not be included in unemployment rate as its their own decision to not look for job even when jobs options are widely open for them. References Dunn, M., Haugen, S. E., Kang, J. L. (2018). The Current Population Surveytracking unemployment in the United States for over 75 years.Monthly Labor Review, 1-23. Lee, G. H., Parasnis, J. (2014). Discouraged workers in developed countries and added workers in developing countries? Unemployment rate and labour force participation.Economic Modelling,41, 90-98. Ravikumar, B., Shao, L. (2014). Discouraged workers: what do we know?.Federal Reserve Bank of St. Louis Economic Synopses, (6).