Discouraged Workers

Definition

Discouraged workers are individuals who have given up looking for employment because they believe there are no job opportunities available to them. They are not included in the official unemployment rate.

Analogy

Imagine you're playing a game and you keep losing over and over again. Eventually, you get discouraged and decide to stop playing altogether because you think there's no chance of winning. Similarly, discouraged workers stop searching for jobs because they believe there's no hope of finding one.

Related terms

Unemployment Rate: The percentage of the labor force that is unemployed and actively seeking employment.

Underemployment: A situation where individuals are working part-time or in jobs that do not fully utilize their skills and qualifications.

Labor Force: The total number of people who are either employed or actively seeking employment.