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The presence of discouraged workers causes the official rate of unemployment to be understating the real extent of unemployment. This is especially a serious problem during recessions because a larger number of discouraged workers will be leaving the labor force.
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Because of the lack of skills or because of disabilities, some individuals are, unfortunately, very unlikely to be able to find full time employment no matter how hard they may seek work. Some may eventually give up looking for work. These are the individual classified as discouraged workers. |
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