Around 1 800 people who were unemployed last month start new jobs this month. As a result of this increase in the number of employed workers, which of the following occurred (ceteris paribus)?

Question

Quizplus · Accepted Answer

When unemployed individuals find jobs, they are no longer considered unemployed and thus are not counted in the unemployment rate. This means that the number of unemployed people decreases, while the number of employed people increases, leading to a decrease in the unemployment rate. The labour force participation rate is unaffected by the increase in employment as it measures the proportion of the population that is either employed or actively seeking employment, and this number has not changed in this scenario.

Around 1 800 People Who Were Unemployed Last Month Start