Question:

How can job growth occur in a month, but the unemployment rate inreases?

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Just how this scenario is possible (i.e. how can job growth occur in a month, when the UR increases).

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2 ANSWERS


  1. The labor force  can increase faster than the  job creation rate. More people could be looking for work because the working age population increased, or school let out and students want jobs, or even because discouraged workers  decided to look for work because the economy  has improved.


  2. The overall population can be increasing.

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