The calculated rate of unemployment will, therefore, underestimate the true level of unemployment in our economy, because we are not taking into account those people in area C.

There are many discouraged workers who have ''given up'' looking for work, after long periods of unemployment. Many of these people would like to work, but believe the are unlikely to find employment.

These people are also called the ''hidden'' unemployed.

The calculated rate of employment also does not accurately measure the level of underemployment.

There are many types of ''underemployment''; you may have a University degree and be employed in an area that does not use your skills adequately (as a student of mine once said ''flipping burgers at Macca's''). You may be employed on a part-time basis, but wanting a full time job.