Is it possible for the unemployment rate to rise at the same time that the number of people working increases?
A) no
B) yes, if the new workers are employed less than full time
C) yes, if labor force growth outpaces growth in the number of people working
D) yes, if established workers keep their jobs but no longer have the option of working overtime

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labor force. If the labor force is growing faster than the number of people who are employed, then the unemployment rate can still rise even if the number of people working is also increasing. This can happen when more people enter the labor force (such as recent graduates or individuals who were previously not looking for work), but job growth does not keep pace with this increase in potential workers.

Is It Possible for the Unemployment Rate to Rise at the Same