is it possible to see an increase in employment rate accompanied by an increase in unemplyment rate?

Question

Is it possible to see an increase in employment rate accompanied by an increase in unemplyment rate? thank you

Answer 1

Absolutely. The unemployment rate is based on the number of people looking for a job as a % those with a job or looking for a job. It's all about the amount actively looking for a job. There are many unemployed people, but if they are not looking for a job, they don't count in the unemployment rate. If suddenly there are a 1000's jobs filled but 10,000 more people who weren't looking for a job start looking because people are hiring , the unemployment rate goes up, but so does the employment rate.

Example Work Age Population 120
Total working 90
Total looking 10
=10% unemployment rate 10/100
=75% employment rate 90/120

Work Force=120
toal working =95
total looking =20

UnEmployment rate= 18%
employment rate=79%

Answer 2

I was going to say No in agreement with Trolling, but turns out the answer is YES (depending on where you live).

In the US the term "employment rate" really isn't used. The percentage of working-age people who work is called the "labor participation rate". The quantity 100% - "Unemployment Rate" doesn't seem seem to have an official name.

But in some places like Canada, they use the term "employment rate" to mean labor participation rate. So Yes, in Canada at least, the "employment rate" could increase, while the unemployment rate also increases, owing to a large increase in the labor force -- imagine a bunch of people formerly not in the labor force commence to actively look for jobs, and only a portion of them find jobs. Both numbers would increase.

Answer 3

As I understand it the Unemployment rate is based on percentages. Ie the percent of people who are employed and in that case no you can not have an increase in both.

But if the rate is based on the number of people who are employed and not the percentage than yes. It could happen If there is a huge jump in the number of people who want to be employed. Unemployment is defined as a person who is activly seeking employment. So say there was a shortage of low skilled workers so we decided to drop the legal working age to 14. So suddenly there would be a million or so 14 and 15 year olds actively seeking work or by the legal definition "Unemployed" and at the same time thousands of them got jobs or became employed. So the number of employed would rise and the number of unemployed would also rise. But I still think that the rates are based on percentages so I dont think it happens.

Answer 4

Um, no.

Essentially, 100% of the labor force = employment rate + unemployment rate.

Since the labor force is always 100%, an increase in one variable automatically required a decrease in the other.

Answer 5

Yes you could.

As more people are employed work force grows. (Total % of
population employed)

This is when people who haven't been in the work force (Or unemployed) get a job. Increasing the total number of people in the work force (Unemployed people count as being in the work force)

More people can be unemployed, & if the total number of newly unemployed is less than than the number added to the over all work force the unemployment rate will go up.

It's just playing with the numbers.

Answer 6

no, it's like the two of us dividing a pie and trying to increase both your and my shares of it.

US has some weird definition of unemployment, where worforce excludes those not looking for job (like bums or children of rich), but it does not change answer to your question.