The population of discouraged workers causes the actual unemployment rate to increase when the workers are not included in the unemployment calculation.
The discouraged worker impact, put simply, refers to someone who has given up looking for work because they think there are no openings. The Bureau of Labor Statistics (BLS) defines a discouraged worker as someone who wants to work and is able to do so but hasn't looked for employment in the previous four weeks because they think they won't be able to find employment for a variety of reasons, such as perceived discrimination or a lack of demand for workers in their field.
According to BLS statistics, minorities, older workers, and recent graduates have the highest rates of disenchanted workers. According to some economists, the fraction of discouraged workers keeps the total unemployment rate high.
Disappointed people frequently attempt to reenter the workforce as the economy grows and new jobs become available. They are regarded as unemployed after they start seeking work once more until they find a job. The flood of previously discouraged job seekers may therefore keep the unemployment rate high even while the general number of jobs rises and people return to the workforce.
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