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Answer on Macroeconomics Question for kiran

Question #35542
many people find the current unemployment figures in australia at 5.5% unbelievable.why is this? why might the official statistics be inaccurate?
Expert's answer
The official unemployment rate, which measures the proportion of the civilian labor force 16 years or older that is not engaged in productive activities but is actively seeking employment, might be either overstated or understated due to discouraged workers, part-time workers, and unreported legal or illegal employment. Taken together, these measurement problems suggest that the official unemployment rate is likely understated during business-cycle contraction and overstated during business-cycle expansions.

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