Which of the following is a shortcoming of the unemployment rate? Choose one or more: A. The unemployment rate does not include discouraged workers. B. There are too few observations collected monthly. The small sample size causes inaccurate measurements. C. If someone is working at a lower-paying job but is qualified for a higher-paying job, he/she is counted as unemployed. D. Temporary workers are not counted as employed.

There are several shortcomings of the unemployment rate and one of them is that A. The unemployment rate does not include discouraged workers.

The Unemployment rate:

Includes only those who are actively looking for work but can't find any
Omits those who gave up on looking for work because they couldn't find any

By omitting these discouraged workers, the unemployment rate does not take into account that these workers are also unemployed and are only not working because they could not find work.

In conclusion, the unemployment rate is lacking in that it does not include discouraged workers.

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