- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 11. Understanding Business Cycles
- Subject 6. Unemployment
CFA Practice Question
Hidden unemployment includes ______.
II. underemployed workers
III. working-age full-time students
I. discouraged workers
II. underemployed workers
III. working-age full-time students
Correct Answer: I, II and III
Only those who have no work but are actively looking for work (and/or qualifying for social security benefits) are counted as unemployed. Hidden, or covered, unemployment is the unemployment of potential workers that is not reflected in official unemployment statistics (due to the way the statistics are collected).
User Contributed Comments 6
| User | Comment |
|---|---|
| hmichta | The answer here states that 'hidden unemployment is the unemployment of potential workers that is not reflected in the statistics'. Previous question stated that undermployment results from people who work below their skill level. As underemployed people do have a job, why would they be included in hidden unemployment? |
| bidisha | or working towards a cfa... |
| bobae | ...there is no such thing as "a cfa" |
| schweitzdm | I agree with @hmichta, I do not understand how underemployed are counted in this hidden form of unemployment. Further clarification would be beneficial. I think AN's answer could be faulty. |
| ascruggs92 | How are students considered part of hidden unemployment? Full time students, for all intents and purposes, are unemployed by choice. That's entirely different that discouraged workers? Underemployed I can understand because they wouldn't have that job if a better job that they are qualified for were available |
| droko | @ascruggs92: these students are not counted in the official stats but some of them still want to work. |