Nalin,

One factor that has impacted the unemployment numbers in the US is the generous stipend given by the government to those who were laid off due to COVID, given as a supplement to the unemployment insurance payments. The total weekly payment was enough for those on lower incomes to decide to stay home and not seek work for almost a year.

How do you see the unemployment rate in the tech industry being different to the other industries?

Suppose there are 25,000 employed and 5,000 unemployed persons. What is the unemployment rate? What if 2,000 of those unemployed became discouraged and quit actively seeking work, what would happen to the unemployment rate? Can you calculate the new unemployment rate?