Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 28 - Part IX - Unemployment - Problems and Applications - Page 605: 3

Answer

These numbers are consistent with each other since the additional population possibly came from people who were not originally in the labor force but now are in the the labor force.

Work Step by Step

One might expect a reduction in the unemployed count less than the increase in the employed count since people might remove themselves from the labor force. This could happen by the following: A high school student is not currently employed as they are not in the labor force (in January 2010). After the initial count, the high school student graduates and finds a job. In January 2013, the student remains employed and counts as part of the employed (for the labor force count).
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