Praxis II Citizenship

Answer: A - Discouraged workers-out of work laborers who have given up looking for new employment for four or more weeks-are not factored into the U.S. unemployment rate. The people who are considered unemployed, for the purposes of calculating the unemployment rate, are civilian (non-military) labors who are 16 or older and actively seeking work. People who are not working and are not looking for a job, such as stay-at-home parents, college students, retirees, are not considered unemployed. Even if the person has not worked in the past (i.e., a 16 year old looking for a first-time job), they are considered unemployed if they are over 16 and actively looking for work. The unemployment rate is considered an economic indicator that confirms (rather than foreshadows) market trends.