All else constant, a lower unemployment rate could result from a. Full-time workers are cut back to part-time. b. Part-time workers are hired on full-time. c. College graduates leave school and begin looking for jobs. d. Unemployed workers become frustrated and stop looking for jobs.
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Full-time workers are cut back to part-time: This would not lower the unemployment rate. In fact, it might increase it if full-time workers need to find additional work to make ends meet. b. Part-time workers are hired on full-time: This would not necessarily Show more…
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27. Suppose there are 2 million unemployed workers seeking jobs. After a period of time, two hundred thousand of them become discouraged over their job prospects and stop looking for work. What will the effect of this on the unemployment rate? A. It will increase in the short run but would eventually decline. B. It will increase. C. It will fall. D. It will be unchanged. E. The question cannot be answered from this information.
One of the main problems with calculating the unemployment rate is that part-time work counts the same as full-time work. If part-time workers were removed from the sum of employed people, what would happen to the calculation? The Unemployment Rate would decrease. The Labor Force would increase.
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