n South Africa, the strict definition (and rate) of unemployment is different from the expanded or broad definition (or rate) of unemployment because the strict rate excludes

Question

n South Africa, the strict definition (and rate) of unemployment is different from the expanded or broad definition (or rate) of unemployment because the strict rate excludes

people working in the informal sector.
people who are involuntarily unemployed.
people who work in subsistence agriculture.
discouraged work-seekers who are not actively looking for work.

Answer 1

The expanded definition of unemployment includes all of these categories of people, while the strict definition only includes those who are formally unemployed and actively seeking work. This means that the expanded definition provides a more comprehensive understanding of the true extent of unemployment in South Africa.