Question

Is a decrease in the unemployment rate necessarily a good thing for a nation? Explain.

Short answer

A decrease in the unemployment rate is not necessarily a good thing for a nation.

Step-by-step solution

Step 1. Unemployment Rate.

The unemployment rate is the percentage of adults who are in the labor force and thus seeking jobs, but who do not have jobs.

Step 2. Decrease in Unemployment Rate.

A decrease in the unemployment rate is not necessarily a good thing for a nation. An increase in discouraged workers will decrease the number of unemployed workers which leads to a decline in the unemployment rate.