Which of the following can make the unemployment rate rise?

Question

Quizplus · Accepted Answer

When there is an increase in the number of people who are looking for work and a decrease in the number of people with jobs, the unemployment rate will rise. Option A would actually decrease the unemployment rate because those who are not employed and not looking for work are not considered part of the labor force. Option B would only increase the labor force participation rate, but not necessarily the unemployment rate if there are sufficient job openings to absorb the increase in the labor force. Option C would directly increase the unemployment rate as it means there are fewer people with jobs.

Which of the Following Can Make the Unemployment Rate Rise