I understand that a retired person doesn't count towards unemployed because they have done their time. It's like if someone was released from prison after five years; then they are no longer called a prisoner, so you cannot call someone that is retired unemployed. My question is, if someone was running an illegal business, would they still count as unemployed? They are still working and bringing in money just like a worker. You might even think of them as an entrepreneur. Another thought about this is, would they be recognized as a discouraged worker? Personally I believe that they make money just like employees, but they have a different way if doing it, yet the government has no knowledge of this