Thursday, January 24, 2008

Discouraged Workers and Unemployment...

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.

3 comments:

Anonymous said...

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].

penisenlargement4male said...

It is best to participate in a contest for among the best blogs on the web. I'll recommend this website!
Vigrx, Vimax Pills Enhance VigRX Plus metropathies Male Extra Amp Do Vimax pills really work mastoidal
More Info:
Penis Enlargement|Penis Enlargement Pills|Vimax Pills|Male Extra Pills |VigRX Plus

Anonymous said...

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].