The issues of discouraged workersunderemployed workers has b

The issues of discouraged workers/under-employed workers has been topics of many political debates on the economy. Why are these topics important to the average worker? Or, are they?

Solution

The official unemployment rate does not consider the discouraged workers as a part of the labor force. Further, part time workers or underemployed workers are considered as employed when calculating the unemployment rate. It undermines the unemployment rate declared by the government. If discouraged workers and under-employed workers are considered in the unemployment rate calculation, the higher unemployment rate will come out, forcing the government to take initiatives to help these particular categories of the workers in terms of unemployment benefits, setting up wages and minimum time of work in a week. These developments help the average workers as they will also get the benefits due to these debates. A government regulation to help these workers, will make an impact in the labor market and they will be get benefitted. Besides, the true picture of the employment situation, will also be reflected.

It may not be very important for those workers who have superior abilities, getting wage differentials and are at a higher position. These individuals may not be affected by the government benefits program for average workers.