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 people divided by the labor force (employed plus unemployed people actively seeking work). If labor force growth outpaces growth in the number of people working, the unemployment rate can still rise even if the number of people working increases. This is because the labor force includes both employed and unemployed people actively seeking work. If more people enter the labor force than the number of jobs created, the unemployment rate will increase.

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