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24-10-2019
Social Studies

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Suppose that roughly 8 million people in the United States were actively seeking jobs but had not found them this month, the same number as last month. Suppose that 2 million of the people who were unemployed last month gave up their search this month and stopped looking for work. What will happen to the official unemployment rate this month, all other things unchanged?

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24-10-2019

Answer:

It depends on how the official unemployment rate is being calculated

Explanation:

If it is based on people actively seeking jobs then the number would fall to 6 million people; if it is based on just people unemployed, whether active or not looking for a job, then the number would still be 8 million people.

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