Discouraged Worker

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Discouraged Worker

A person in the labor force who is not actively looking for work or who has been unable to find a job for an extended period of time. Discouraged workers are considered "marginally attached" to the labor force. Somewhat controversially, discouraged workers are generally not included in official estimations of unemployment.
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A massive number of discouraged workers failed to get jobs during the public servant recruiting period around the end of last year.
This new measure is called the Non-Employment Index (NEI) and incorporates all non-employed individuals such as discouraged workers, passive job seekers and underemployed workers individuals who are working part time but would like to work more hours.
Kickstarter scraps its "unlimited vacation" policy because it discouraged workers from taking a break.
The figure includes discouraged workers who stopped looking as well as part-time workers who want but can't get full-time jobs.
Discouraged workers are persons not currently looking for work because they believe no jobs are available for them.
The growing numbers of those discouraged workers explain a seeming contradiction: At the same time the official unemployment rate continues its impressive decline, the total percentage of adult Americans in the labor force hit a recent modern low of 62.
pdf) BLS official noted that "The number of discouraged workers was much smaller after the 1994 redesign because the definition for the group was tightened.
7 per cent, as discouraged workers left the workforce, the Bureau of Labour Statistics said.
Indeed, while the broader measure of labor market utilization, the "underemployment" rate (U-6, which factors in discouraged workers and part-time workers desiring full time positions) has fallen sharply from 17 percent in 2009-10, it remained relatively high on a historical basis at 9.
However, if the number of discouraged workers is included and the normal increase in labour force allowed for, the total number of unemployed rises to 5.
The problem with the 5% unemployment rate is that it does not include any discouraged workers.
Even so, the further decline in U6 unemployment (a wider measure of unemployment capturing segments such as discouraged workers and those looking for more work but can't find it) suggests that we may not be waiting as long as some suspect.