The Bureau of Labor Statistics has several measures of joblessness in addition to the official unemployment rate. One alternative is the U-4 measure of labor underutilization, which is calculated as follows: U = 100 * Unemployed+Discouraged/Labour force + discouraged
Fill in the following table by calculating the official unemployment rate and the U-4 measure of labor underutilization.
9.05 9.05
9.64 9.64
9.70 9.70
9.95 9.95
13.91 13.91
14.60 14.60
The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy.
Excluding discouraged workers from the official unemployment rate may cause the official rate to (overstate/understate) the true extent of underemployment.