If unemployed workers decide to stop looking for a job and instead enroll in further education, how will the number of employed workers and the unemployment rate change?

Choose 1 answer:
(A) The number of employed workers does not change; the unemployment rate decreases
(B) The number of employed workers does not change; the unemployment rate does not change
(C) The number of employed workers increases; the unemployment rate decreases
INCORRECT
The number of employed workers decreases; the unemployment rate increases
Individuals going back to school does not affect the number of employed workers. Also, when unemployed workers stop looking for jobs, they leave the labor force. A decrease in the number of people in the labor force reduces the unemployment rate. In the equation for calculating unemployment, the denominator gets smaller, but the numerator is unchanged. This will make the ratio smaller.
(E) The number of employed workers does not change; the unemployment rate increases
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Question

If unemployed workers decide to stop looking for a job and instead enroll in further education, how will the number of employed workers and the unemployment rate change?

Choose 1 answer:
(A) The number of employed workers does not change; the unemployment rate decreases
(B) The number of employed workers does not change; the unemployment rate does not change
(C) The number of employed workers increases; the unemployment rate decreases
INCORRECT
The number of employed workers decreases; the unemployment rate increases
Individuals going back to school does not affect the number of employed workers. Also, when unemployed workers stop looking for jobs, they leave the labor force. A decrease in the number of people in the labor force reduces the unemployment rate. In the equation for calculating unemployment, the denominator gets smaller, but the numerator is unchanged. This will make the ratio smaller.
(E) The number of employed workers does not change; the unemployment rate increases
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Accepted Answer

***A*** ∻Key Concept∻ ⚹Labor Force Participation Rate and Unemployment Rate⚹ ∻Explanation∻ ⚹When unemployed workers stop looking for jobs to enroll in further education, they are no longer part of the labor force. This does not change the number of employed workers, but it does reduce the labor force, which in turn decreases the unemployment rate. The unemployment rate is calculated as $ \frac{ ext{Number of Unemployed Workers}}{ ext{Labor Force}} imes 100 $. If the numerator remains the same but the denominator decreases because people leave the labor force, the unemployment rate will decrease.⚹◊How does a decrease in the labor force participation rate affect the unemployment rate in the economy?⍭ Generate me a similar question◊

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