Lower unemployment rate

April 2012, the unemployment rate fell from

8.2% to 8.1%, but the number of people in the

labor force decreased by 342,000. Recent declines

in the labor force have had a large effect on the

unemployment rate. An article on USAToday.

com noted that: “If the same percentage of adults

were in the workforce today as when Barack

Obama took office, the unemployment rate

would be 11.1 percent. If the percentage was

where it was when George W. Bush took office,

the unemployment rate would be 13.1 percent.”

a. Why would a decrease in the labor force lead

to a lower unemployment rate?

b. What might cause unemployed workers to

leave the labor force?