The unemployment rate rises any time there is an increase in the number of unemployed persons.

Question

Quizplus · Accepted Answer

The unemployment rate is a ratio that compares the number of unemployed individuals to the total labor force. It can remain the same or even decrease if the labor force (the denominator in the ratio) decreases by a larger proportion than the increase in unemployed individuals, or if the increase in unemployed individuals is offset by a larger increase in the total labor force.

The Unemployment Rate Rises Any Time There Is an Increase