Can be anything. For one, they could actually be looking at jobs but passively. i.e. if you check the newspaper or websites for jobs, but didn't apply to any,

Can be anything. For one, they could actually be looking at jobs but passively. i.e. if you check the newspaper or websites for jobs, but didn't apply to any, you're not counted as 'looking for a job', so you're not unemployed either even though you obviously are. Passive job search is not included in the figures. Other than that, note that unemployment is measured in periods of 4 weeks. i.e. if you have a consulting gig for 8 months, and are then out of a freelance job for 5 weeks (after which you get another gig), and get interviewed during that time, you'd be unemployed, despite the fact you may have earned a normal annual income that year. Anyway, that's just to say that unemployment numbers may be off. It doesn't answer your question yet. But indeed there are also people who can't provide for themselves and are considered unemployed. A lot of them live at their parents, another significant chunk is simply living on debt. Creditcard debt is huge in the US.