If half of all unemployed individuals suddenly gave up looking for work,the unemployment rate would ________ and the labour force participation rate would ________.

Question

Quizplus · Accepted Answer

The unemployment rate would decrease because those individuals would no longer be counted as part of the labor force, thus reducing the number of unemployed people. The labor force participation rate would also decrease because the labor force would shrink as these individuals stop looking for work.

If Half of All Unemployed Individuals Suddenly Gave Up Looking