Imagine you have spent a year searching for a job and have become discouraged. In the last six weeks, you have not looked for work. When numerous people are in the same situation as you, all else being equal, the unemployment rate .

Falls or goes down.

Explanation:

In this scenario, we would imagine you have spent a year searching for a job and have become discouraged. Hence, in the last six (6) weeks, you have not looked for work. When numerous people are in the same situation as you, all else being equal, the unemployment rate falls or goes down.

The unemployment rate is directly proportional to the number of people seeking or looking for employment at a particular period of time. A rise in the level of unemployment is as a result of an increase in the number of people seeking employment, thus, unemployment rates rise as the number of applicants increases. Consequently, if people become discouraged from searching for a job, then the unemployment rate would fall since no applications are being submitted.

In a nutshell, a decrease in the number of people seeking employment in a country causes the unemployment rate to fall or decline and vice-versa.

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