If members of the labor force who had been classified as "unemployed" fail to find a suitable job and stop looking for work, their decision tends to make the unemployment rate

Question

Quizplus · Accepted Answer

If individuals who were previously unemployed stop looking for work and drop out of the labor force, they will no longer be counted as unemployed. This causes the labor force to decrease, which negatively affects the unemployment rate as it is calculated by dividing the number of people classified as unemployed by the size of the labor force. Therefore, if the labor force decreases, the unemployment rate will also decrease.

If Members of the Labor Force Who Had Been Classified