Pre-thinking:Companies report number of jobs lost or gained monthly. Government tallies it up to assess total gain or loss in jobs for the past month. Despite this happening correctly, number of jobs lost was underestimated.
We are required to resolve this apparent paradox. We are, therefore, looking for an explanation that involves actual jobs lost
not being reported (since the tallying by the government is stated to be correct).
Let us examine the options:
(A) More jobs are lost in a recession than in a period of growth.
Does not explain how the lost jobs were not reported. Eliminate.(B) The expenses of collecting and reporting employment data have steadily increased.
Does not explain how lost jobs were not reported. Eliminate.(C) Many people who lose their jobs start up their own businesses.
These people would have to report the jobs in their own companies, including their own. Hence, this does not explain how the lost jobs were not reported. Eliminate.(D) In the recent recession a large number of failing companies abruptly ceased all operations.
Correct. If the companies ceased operations, all the jobs in such companies would be "lost", but since the companies do not exist anymore, they would not be reporting the lost jobs to the government, resulting in an underestimation of the number of jobs lost.(E) The recent recession contributed to the growing preponderance of service jobs over manufacturing jobs.
Does not explain how the lost jobs were not reported. Eliminate.Hope this helps.
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