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What Are Discouraged Workers? Definition, Examples and How BLS Counts Them

Discouraged workers want and are available for work but have not searched in the past four weeks because they believe their job prospects are poor. Here is how BLS classifies them and how broader labor measures count them.
From TheFinanceBase Team4 min to read
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Discouraged workers are people who want a job and are available to work, have searched for work within the past 12 months, but have not actively searched in the past four weeks because they believe suitable work is unavailable or their prospects are poor. The U.S. Bureau of Labor Statistics (BLS) classifies them as a subset of people marginally attached to the labor force—not as officially unemployed.

How the BLS defines discouraged workers

The BLS uses the Current Population Survey (CPS), a household survey, to classify people by labor-force status. To be considered marginally attached to the labor force, a person must be out of work and not currently looking, want a job, be available for work, and have searched for work in the previous 12 months—or since the end of a job held during that period. They must not have actively searched in the four weeks before the survey.

Discouraged workers meet those conditions and give a job-market reason for not searching recently. The BLS describes them as a subset of people marginally attached to the labor force and part of the broader group of people not in the labor force. BLS Concepts and Definitions (CPS)

What makes someone discouraged?

The defining issue is why the person stopped looking during the most recent four weeks. BLS examples of discouragement include believing there are no jobs available in the person’s line of work or area, having been unable to find work before, lacking the necessary schooling or training, or believing employers consider the person too young or too old or discriminate against them for another reason. BLS Concepts and Definitions (CPS)

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Other people may meet the marginal-attachment criteria but are not classified as discouraged if they cite another reason for not searching. Examples include family responsibilities, school or training, ill health, disability, and transportation problems. BLS Concepts and Definitions (CPS)

Are discouraged workers counted as unemployed?

No. Under the official measure, a person generally must have actively looked for work in the most recent four weeks to be counted as unemployed; specific exceptions include people on temporary layoff. Discouraged workers do not meet that recent-search test, so the BLS classifies them as “not in the labor force,” rather than employed or unemployed. That classification does not mean they do not want a job: wanting work and being available are part of the criteria for marginal attachment.

How discouraged workers differ from other people marginally attached

All discouraged workers are marginally attached, but not everyone marginally attached is discouraged. The distinction is the reason for not searching in the past four weeks:

  • Discouraged workers: Do not search because they believe their job prospects are poor or suitable work is unavailable.
  • Other people marginally attached: Meet the same basic tests for wanting and being available for work, and having searched within the past year, but cite a different reason for not searching recently, such as school, family responsibilities, health, disability, or transportation.

How U-3, U-4, U-5 and U-6 differ

The headline unemployment rate is U-3. BLS also publishes broader measures that include groups left out of U-3. They differ in both who is included in the numerator and the size of the denominator, so the rates are related but not interchangeable.

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Measure Who is included How it expands on the prior measure
U-3 Officially unemployed people as a share of the civilian labor force. Official unemployment measure.
U-4 Unemployed people plus discouraged workers, relative to the civilian labor force plus discouraged workers. Adds discouraged workers to both the count and denominator.
U-5 Unemployed people plus all people marginally attached to the labor force, relative to the civilian labor force plus all marginally attached people. Includes marginally attached people who are not discouraged as well.
U-6 Unemployed people, all marginally attached people, and people working part time for economic reasons, relative to the civilian labor force plus all marginally attached people. Also includes people working part time for economic reasons in the count.

BLS definitions for these measures are provided in Summary Table A.

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September 2026 figures: keep the adjustment label attached

For September 2026, BLS reported 394,000 discouraged workers in its not-seasonally-adjusted Table A-16 and 414,000 in its seasonally adjusted Summary Table A. These are different versions of the monthly estimate; the adjustment status should stay attached whenever either count is cited. Monthly estimates can change in later releases, and population controls are updated annually. Table A-16; Summary Table A

In the September 2026 seasonally adjusted figures, the official unemployment rate (U-3) was 4.2 percent and U-4 was 4.4 percent. U-4 is higher in part because its calculation adds discouraged workers to both the unemployed count and the denominator. BLS Summary Table A

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How to interpret the category

  • It describes a specific CPS classification, not everyone who has given up on a job search or anyone who is simply out of work.
  • The four-week recent-search window and the reason for not searching both matter; wanting work alone does not qualify someone as a discouraged worker.
  • When comparing unemployment measures, identify the measure and its denominator rather than treating a broader rate as a direct substitute for U-3.
  • When quoting a monthly discouraged-worker count, state the month and whether it is seasonally adjusted or not seasonally adjusted.

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