Canadian Securities Course (CSC) Level 1 Practice Exam

What is a discouraged worker?

1. A person who works part-time but desires full-time employment

2. A person who chooses to be self-employed over seeking traditional employment

3. A person who wants a job but is not looking because he/she is discouraged

4. A person who is not interested in working

The correct answer is: A person who wants a job but is not looking because he/she is discouraged

A discouraged worker is specifically defined as someone who wants to work but has stopped actively seeking employment due to feelings of discouragement. This discouragement often stems from a belief that there are no jobs available for them, or they may have faced repeated rejections that led them to conclude that their job search would not be successful. The importance of this definition lies in understanding the nuances of the labor market and how various factors can affect an individual's employment status. In contrast, the other definitions do not accurately reflect the concept of a discouraged worker. For example, individuals who work part-time but desire full-time work do not fit this category, as they are still engaged in the workforce and actively seeking additional opportunities. Similarly, those who choose self-employment over traditional employment are making a distinct choice rather than being discouraged from seeking work altogether. Lastly, a person who is not interested in working does not align with the definition of a discouraged worker, as they do not have the desire for a job in the first place. Thus, identifying a discouraged worker highlights their specific situation within the workforce.