Question

If many workers become discouraged from looking for jobs, explain how the number of jobs could decline but the unemployment rate could fall at the same time.

Short answer

If number of discouraged worker is high it means there are very less jobs available in economy for workers.

Step-by-step solution

Step 1. Discouraged workers

Those workers who are eligible for jobs but have they have stopped looking for job because they might not find suitable options they are looking for.

Step 2. Explanation

If many workers are discouraged then it means very less number of jobs are available for workers, As it is indicating that many workers are leaving and becoming unemployed.

Step 3. Conclusion

The discouraged workers are not included in the labor force. So, when some workers become discourgaed, the labor force declines, this causes the unemployment rate declines as well.