If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the

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The discouraged worker effect refers to individuals who have given up on searching for work due to a lack of employment opportunities. If the unemployment rate falls because of a decrease in the number of people actively searching for work, it is likely due to more individuals becoming discouraged and no longer seeking employment, rather than an increase in employment opportunities.

If the Unemployment Rate Falls Because the Number of People