When the United States unemployment rate is calculated, people who have part-time jobs are...
Choose one answer.
a. subtracted from both the totals of employed and unemployed
b. counted as fully employed
c. included in the labor force but not counted as either employed or unemployed
d. counted as a fraction of a fully employed worker.
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The only possible correct answer to this question is B. There is no differentiation made between people who are employed part time and those who are employed full time when it comes to official rates of unemployment. According to the official definition of unemployment, a person who works at all is employed. A person who works as little as one hour per week for pay is counted as employed. This is one of the most important reasons why the official unemployment rate can at times understate how bad things are in an economy.
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