A and E both are strong contenders.....but m not able to figure aot any strong enough reason to keep E and reject A...plz explain

At least POE was between E and A.

My reasoning for A.

Low claims>>No more recession.

Assume people who are laid off and are eligible for benefits actually do file a claim for those benefits.

But E was also pretty solid.

Assume people's benefits run out, so still unemployed, recession unchanged.

IMO E

1)A majority of the number of people who became eligible to file unemployment benefits from the state in the past three months chose to do so.
This actually WEAKENS the argument. If majority of the eligible people actually filed for benefits, then the number can possibly go up.

2)The drop in the number of people collecting unemployment benefits from the state cannot be traced to a reduction in the number of people being dismissed from minimum wage jobs.
This can be the answer, but it talks specifically about people being dismissed from minimum wage jobs. If the number of dismissed people is less than the drop in the number of people collecting benefits, then it is not actually talking about why those folks stopped collecting benefits ( who were not dismissed from these minimum wage jobs).

3)A substantial number of people who had been collecting unemployment benefits have been rehired by their former employers during the last three months.
This again is useless. It is like 3+3-3 = 3 (original number). Does not help us.

4)A substantial number of people have not in the last three months moved from one state where they have collected unemployment benefits to another state where they continue to receive jobless benefits.
This talks about people collecting benefits in different states. It is not related to what we are looking for.

5)The reduction in the number of people collecting unemployment benefits from the state is not because of an increase in the number of people whose benefits came to an end.
This fits the bill. In classic GMAT fashion, it tells you that there could be a possibility that some of the people have had their benefits come to an end. But, the drop is not related to this alone. This throws open the possibility of other reasons.

One thing I find is that such options open the door for the student to speculate and it seems the Test creators love doing that.

Hi Serendipiteez

I have an example, hope it helps.

At the beginning of 2012, Town A had 1000 people, unemployment rate was 10% ==> 100 people were unemployed, ALL of them filed for unemployment benefit. Let say, unemployment benefit package lasts for 1 years (it will end at the end of 2012)
==> 100 people got unemployment benefit

At the beginning of 2013, Town A still had 1000 people, but unemployment rate was 15% ==> 150 people were unemployed. ALL People who are eligible for unemployment benefit chose to file petition. However,
100 people who filed petition in 2012 will not get unemployment benefit anymore, their benefits ended at the end of 2012.
==> ONLY 50 NEW people got unemployment benefit.

Clearly, the number of people getting unemployment benefit decreased.

Can we conclude that economy recovers if we base solely on the number of people who get unemployment benefit. Nope, we must base on the number of people who are unemployed.

Does it help, let me know.
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Please +1 KUDO if my post helps. Thank you.

Choosing correct answers is not as important as explaining why other answers are wrong. Keep learning everyday!