How does the exit of discouraged workers from the labor force affect the unemployment rate?

When discouraged workers stop looking for jobs, they leave the labor force, which can actually lower the unemployment rate. The unemployment rate is calculated by dividing the number of unemployed people actively looking for work by the total labor force. If discouraged workers, who have given up searching, are no longer counted as part of the labor force, the total number of people considered unemployed decreases relative to the smaller labor force. For example, if 100 people are looking for jobs but 20 discouraged workers leave, now only 80 are counted as unemployed, making the unemployment rate seem lower even though there might still be joblessness. This can create a misleading picture of the job market, as it may suggest that more people have found work when, in reality, some have just stopped searching.