According to the text, if discouraged workers are not counted as unemployed, the unemployment rate will be understated during recessions. Why is this? - Jane
The unemployment rate = 100* unemployment / (unemployment + employment). An increase in the number of discouraged workers decreases both the numerator and the denominator by the same amount. But because the numerator (unemployment) is much smaller than the denominator (unemployment + employment), in percent terms the numerator declines by more. Hence the measured unemployment rate falls.
Subscribe to:
Post Comments (Atom)
2 comments:
Hi There I'd love to congratulate you for such a great made forum!
Just thought this is a nice way to make my first post!
Sincerely,
Laurence Todd
if you're ever bored check out my site!
[url=http://www.partyopedia.com/articles/caillou-party-supplies.html]caillou Party Supplies[/url].
top [url=http://www.001casino.com/]free casino games[/url] coincide the latest [url=http://www.casinolasvegass.com/]casino[/url] autonomous no store bonus at the chief [url=http://www.baywatchcasino.com/]baywatch casino
[/url].
Post a Comment