Discouraged Worker

People who disengage from the labor market, either by not working, or by not actively seeking employment. Discouraged workers are not counted as unemployed, nor are they counted as employed. 

How the Government Measures Unemployment

The Bureau of Labor Statistics website explains how the unemployment rate in the United States is measured.

The Unemployment Rate

A person is unemployed if he or she is without work and is actively seeking paid work. Knowing the amount of unemployment in an economy would help gauge the overall health of that economy. Human activity in paid work can be one of the biggest resources a country has. The number of employed alone is not so meaningful.
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