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Discouraged worker

A person who drops out of the labour market after a period of unemployment. This follows after they have been unable to get work of a type they regard as suitable for their qualifications, or in some cases to get causing their skills to deteriorate, from fear that emoloyers causing their skills to deteriorate, from fear that employers regard prolonged unemployment as being in itself a bad signal, or from finding unemployment preferable to employment.

Reference: Oxford Press Dictonary of Economics, 5th edt.