The unemployment rate will decrease when
A)the duration of unemployment increases.
B)the average work week falls from 40 to 39 hours.
C)the age of the labour force increases.
D)people get discouraged and quit looking for work.

Question

Quizplus · Accepted Answer

The unemployment rate measures the percentage of the labor force that is jobless and actively seeking employment. When people get discouraged and quit looking for work, they are no longer counted as part of the labor force, which can lead to a decrease in the unemployment rate, even though it doesn't necessarily indicate an improvement in the job market.

The Unemployment Rate Will Decrease When