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If many workers become discouraged from looking for jobs, explain how the number of jobs could...

If many workers become discouraged from looking for jobs, explain how the number of jobs could decline but the unemployment rate could fall at the same time.

 

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Answer #1

The unemployment rate determines that part in which employees are desperately looking for the jobs but currently have none. The rate mostly measures between the employees and the unemployed persons. The unemployment rate may fall due to the number of changes in the number of job seekers or changes in the size of the labour force. It can be said that when the employees become discouraged from finding any job, they generally leave the labour force. Sometimes, according to the economists, unemployment rates can be misleading as labour force would decrease when employees give up looking for jobs.

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