When an unemployed worker becomes discouraged and leaves the labour force,
A) the unemployment rate increases.
B) the labour force participation rate increases.
C) the employment/population ratio decreases.
D) the unemployment rate decreases.
E) the employment/population ratio increases.

Question

Quizplus · Accepted Answer

When a discouraged worker leaves the labor force, they are no longer counted as unemployed, which reduces the number of unemployed individuals and thus decreases the unemployment rate.

When an Unemployed Worker Becomes Discouraged and Leaves the Labour