What does an unemployment rate decrease mean?
A) The number of persons classified as unemployed increases.
B) The number of unemployed decreases relative to the size of the labour force.
C) The size of the population decreases and the number of persons classified as employed remains the same.
D) The size of the labour force decreases.

Question

What does an unemployment rate decrease mean?  
A) The number of persons classified as unemployed increases. 
B) The number of unemployed decreases relative to the size of the labour force. 
C) The size of the population decreases and the number of persons classified as employed remains the same. 
D) The size of the labour force decreases.

Quizplus · Accepted Answer

A decrease in the unemployment rate means that the number of unemployed individuals has decreased relative to the size of the labor force. This could be due to an increase in the number of employed individuals or a decrease in the size of the labor force, but the important factor is that the ratio of unemployed individuals to the total labor force has decreased.

What Does an Unemployment Rate Decrease Mean