Limitations of the unemployment rate

Employment statistics do not show the extent of underemployment. Some people who work part-time want to work full-time, and some people are working in jobs well below their qualifications, e.g. a lawyer working as a sales assistant. To be considered unemployed, a person must be actively seeking employment. Many people, however, who have been unable to find work for a long time, become so discouraged that they stop actively looking for a job. These people are the hidden unemployed (sometimes called discouraged workers). There are three main categories of hidden unemployed. 

• Housewives whose families have grown up. They want a job but can't find one, as they don't have the required skills.
• Older males who are forced into early retirement because employers are unwilling to give them a job. 
• Teenagers who can't find a job and so go back to school to improve their qualifications.