According to the Labour Force Survey, between 2003 and 2008, total UK employment increased by around 1.25

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According to the Labour Force Survey, between 2003 and 2008, total UK employment increased by around 1.25 million workers, but the number of unemployed workers increased by 287 000.

a. How are these numbers consistent with each other?

b. In some cases, there can be an increase in the number of people employed but the number of unemployed people declines by a smaller amount. Why might one expect a reduction in the number of people counted as unemployed to be smaller than the increase in the number of people employed?

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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