Scenario: The unemployment rate in Country Y is 6 percent, and the labor force is equals about 200 million people.
-Refer to the scenario above.How would the unemployment rate change if Country Y experienced a large increase in immigration of skilled workers?

Question

Quizplus · Accepted Answer

The unemployment rate is determined by the ratio of unemployed individuals to the total labor force. If immigration increases the labor force but also adds to both employed and unemployed numbers, the effect on the unemployment rate could vary. It depends on how many of the immigrants find jobs versus how many do not, affecting both the numerator and denominator of the unemployment rate calculation.

Scenario: the Unemployment Rate in Country Y Is 6 Percent