Question

How is a discouraged worker different from an unemployed worker?

Short answer

The main difference between a discouraged worker and an unemployed worker is that a discouraged worker has stopped looking for work out of frustration or belief there are no available jobs for them, while an unemployed worker is not working but has been actively seeking employment for the past four weeks.

Step-by-step solution

Define Discouraged Worker

A discouraged worker is generally defined as a person who is eligible for work and is able to work, but is not currently seeking employment because they believe there are no jobs available for them or there are other barriers to employment.

Define Unemployed Worker

On the other hand, an unemployed worker is someone who is currently not working, is available for work, and has been actively seeking employment for the past four weeks.

Identify the Differences

The major difference between a discouraged worker and an unemployed worker lies in their job-seeking behavior. While both groups are not working, unemployed workers are actively seeking jobs while discouraged workers have stopped seeking employment out of disillusionment or concern about the lack of suitable opportunities.