Where is the unemployment rate more likely higher?
A) where minimum wages are lower, because people don't take low-paid jobs
B) in the public sector, because less workers are unionized
C) where EI benefits are higher, because people have less incentive to find jobs
D) in the private sector, because minimum wages are higher

Question

Quizplus · Accepted Answer

When EI benefits are higher, people may be less motivated to actively look for work, as they may feel they can rely on the benefits instead. This can lead to a higher unemployment rate.

Where Is the Unemployment Rate More Likely Higher