What term describes individuals of legal employment age who are not actively looking for work due to discouragement from long-term unemployment?

The correct term for individuals of legal employment age who are not actively looking for work due to discouragement stemming from long-term unemployment is "Discouraged Workers." This term specifically refers to those who have stopped seeking employment because they believe there are no job opportunities available to them or that they will not be successful in finding a job. This concept highlights the psychological impact of prolonged unemployment, where individuals lose motivation to continue their job search.

Job seekers are actively looking for work, while unemployed individuals are typically still part of the workforce but are seeking employment. Underemployed workers, on the other hand, are those who may have jobs but are working in positions that do not utilize their skills fully or provide adequate hours or pay. Discouraged workers are distinct because their lack of job search activity is primarily due to feelings of hopelessness rather than a lack of desire to work.