Jobs Report: Hiring Up, Unemployment Down
The Labor Department reported that hiring
accelerated in November, and the unemployment rate fell to 8.6 percent from 9 percent in
October. Two reasons for the fall are that more
Americans got jobs, but even more people gave
up on their job searches altogether.
Source: CNNMoney, December 2, 2011
Explain how the labour force and unemployment
would have changed if the only change were that:
a. All the newly hired people had been unemployed in October.
b. People gave up on their job searches.