The BLS report from July 6th, 2018, reported that unemployment increased from 3.
ID: 1163156 • Letter: T
Question
The BLS report from July 6th, 2018, reported that unemployment increased from 3.8% to 4.0% while the total nonfarm payroll employment increased by 213,000. What is the best explanation for the number of jobs increasing while the unemployment rate also increases?
A. More people are entering the labor force, increasing the pool of job seekers.
B. The BLS publishes false statistics.
C. The natural rate of unemployment is falling.
D. The number of part time workers increased more than the number of full time workers.
A. More people are entering the labor force, increasing the pool of job seekers.
B. The BLS publishes false statistics.
C. The natural rate of unemployment is falling.
D. The number of part time workers increased more than the number of full time workers.
Explanation / Answer
Correct Answer:
A
When % increase in number of people participating in the workforce, is higher than the % of people getting employed, then unemployment rate increases, even if the more number of people get the unemployment. Here, more people join the workforce and seek jobs, but most of them, don’t get it.
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