Parts of the unemployment rate which might increase when labor market conditions are better do include:
A)Those who voluntarily quit existing jobs.
B)Those who are newly entering the labor force.
C)Those who are re-entering the labor force after leaving it earlier.
D)All of the above.

Question

Parts of the unemployment rate which might increase when labor market conditions are better do include:
A)​Those who voluntarily quit existing jobs.
B)​Those who are newly entering the labor force.
C)​Those who are re-entering the labor force after leaving it earlier.
D)​All of the above.

Quizplus · Accepted Answer

When labor market conditions are better, people become more confident about finding a job and may voluntarily quit their existing jobs to pursue better opportunities. In addition, new graduates and individuals who were previously discouraged from entering the labor force may also begin to look for work, increasing the number of people who are newly entering the labor force. Finally, those who had previously given up on finding employment may begin searching again, leading to an increase in the number of people re-entering the labor force. Therefore, all of the above choices are likely to increase when labor market conditions are better.

Parts of the Unemployment Rate Which Might Increase When Labor