Which of the following decreases the official U-3 unemployment rate?
A) Young people graduate from college and start to look for their first full -time job.
B) Workers leave the labor force.
C) More women enter the labor force and seek jobs.
D) None of the above because they all increase or do not change the unemployment rate.

Question

Quizplus · Accepted Answer

When workers leave the labor force, they are no longer counted as unemployed and therefore decrease the U-3 unemployment rate. Option A and C both increase the labor force participation rate and have the potential to increase the unemployment rate. Option D is incorrect because option B does decrease the unemployment rate.

Which of the Following Decreases the Official U-3 Unemployment Rate