Politician: Since my administration has entered office, the percentage of people who are looking for work but are unable to find it has dropped from 7% to 5% of the total number of people either working or looking for work. These statistics show that it is clear that my administration’s business-friendly policies have helped reduce the level of unemployment among those willing to work.
Which of the following is an assumption on which the politician’s argument relies?
A. The previous administration’s worker re-education program had no significant effect on the unemployment rate.
B. Less than 2% of the population that were working or willing to work at the start of the politician’s term have stopped working or looking for work.
C. None of the new jobs created during the politician’s term went to those who already had jobs.
D. Most of those looking for employment found jobs in the field they were trained in.
E. The politician’s business-friendly policies have had a direct affect on the ability of firms to hire more workers
The answer given is B.I don't understand why....For example,say there are 100 ppl in the workforce(93 working,7 ppl willing to work but jobless)....The argument says this 7% unemployment rate goes down to 5%...There are many possible cases now....
Case 1:Nobody withdraws from the workforce
the split becomes (95 working,5 jobless) and this favor's the politician's stance.
Case 2:People withdraw from the workforce...here again we have 2 sub cases.
2.1. people who were working withdraw from the workforce.
In this case, the workforce (denominator)shrinks whereas the number of jobless people remains
unaffected....In such a case the unemployment rate definitely increases
2.2.Jobless people withdraw.
This is the case in question for this problem.In this case ,both the numerator and denominator decrease...I
am not very sure how a figure of 2% is arrived at whether the net effect of such a situation is always a
resultant decrease.In this case say 1 jobless person withdraws,we are left with 99 in the denominator and
5 (5% of 99 approx) in the numerator.This means there are 5 unemployed people and 94 employed
people.This is a desirable scenario compared to a (93,7) figure
Now, consider 3 jobless people withdrawing.....Now we have 97 people in the dnominator (5 unemployed,92
employed ...is this desirable or not??I am not sure....
Any help is welcome..