How can unemployment and employment rise at the same time?

the_0ne

It's in my text book but it doesn't explain it very well.

Thanks :biggrin:

Reply 1

liverpool

dont really no

but a guess would be that at 1 time a firm could go into bankrupcy and close down which leads to people losing jobs ( unemployment) while at the same time another firm opens and is looking for more workers. ( employment)

a total guess and probably wrong. :p:

Reply 2

avtrf

If more people enter the working population, both unemployment and employment can rise. So for example, if 10 million people are working, and 1 million aren't (for whatever reason) and a further 2 million enter the working population then employment could rise to 11 million and unemployment to 2 million which is a rise in both employment and unemployment.

Reply 3

liverpool

avtrf

good point :smile:

more logical to the one i gave above :p:

Reply 4

the_0ne

Oh yeah i get it. Cheers.

Reply 5

rigga

of course it depends on whether the unemployment figures are percentages or absolute figures...

Even if the working population increases, the percentages of those unemployed and employed might not change, but the number of people unemployed and employed could both increase.

It's impossible to increase the percentage unemployed and the percentage employed if the working population only consists of those who are unemployed or employed.

Reply 6

barry_4_england

There's a group called the economically inactive (students, caring for disabled partner etc), and if all of a sudden a lot came active, then some would become employed and some would become unemployed if they were actively seeking work.