In September 2014, the official U-3 unemployment rate dropped from 6.1 percent to 5.9 percent. This change could have been caused by
A) unemployed workers giving up looking for a job.
B) part-time workers getting a full-time job.
C) full-time workers becoming part-time workers.
D) workers who had previously given up looking for a job starting to look again.

Question

Quizplus · Accepted Answer

The U-3 unemployment rate measures the percentage of the labor force that is unemployed and actively seeking employment. If unemployed workers stop looking for a job, they are no longer counted as part of the labor force, which can cause the unemployment rate to drop, as seen in the scenario from 6.1 percent to 5.9 percent.

In September 2014, the Official U-3 Unemployment Rate Dropped from 6.1