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# The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 09:09
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

Unemployment rate = no of people unemployed/ total number of people

Percent decreased yet number cannot be said to be low, why?

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 - does not matter how many jobs they change.
(B) The total available work force, including those with and without employment, increased between 1881 and 1886 Correct
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881. Only number of certain states does not matter

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers. Wages is out of scope

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 09:16
Correct Choice: A.

"Unemployed people in 1886 Prelandia was lower than it had been in 1881" and it can not be concluded due to.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 [provide sufficient alternate reason to believe]
(B) The total available work force, including those with and without employment, increased between 1881 and 1886 [info. not clear, with/without...]
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881 [OFS]
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers [talks about displacement from high band to lower band]
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 09:16
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

Workforce in 1881: 10,000
Unemployed in 1881 : 8% = 800
Employed in 1881 : 9,200

Workforce in 1886: 100,000
Unemployed in 1886 : 7% = 7000
Employed in 1881 : 93,000

Option (B) follows above logic. Rest are irrelevant. Hence, (B) is the correct answer.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
(B) The total available work force, including those with and without employment, increased between 1881 and 1886
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 09:24
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

The stimulus says there is decrease in unemployment rate between 1881 to 1886, but it doesn't look conclusive from the statistics.

The right answer will tell us why the statistics may not be reliable.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 (This does not tell us why the statistics may not be reliable, it only says people working change job frequently - INCORRECT)
(B) The total available work force, including those with and without employment, increased between 1881 and 1886 (This says that work force increased and does not give us any information that will help us on the statistics - INCORRECT)
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881 (This is totally out of scope as it as nothing to do with the argument - INCORRECT)
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers (This tells us that there is actually more unemployment - INCORRECT)
(E) help-wanted advertisements increased between 1881 and 1886 (This looks like it as it states that there are more help-wanted jobs. This means that a lot of unemployed people actually took helping job and that decreases the unemployment rate - CORRECT)

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 09:31
(A) The average time that employees stay in any one job dropped during the period 1881 to 1886---not meaningful time is totally out of scope.
(B) The total available work force, including those with and without employment, increased between 1881 and 1886---if total workforce increased number of unemployed also might increase but not decrease.
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881---irrelevant always ignore options like these.
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers--people got displaced therefore unemployment reduced and the number of unemployed people didnt increase
(E) help-wanted advertisements increased between 1881 and 1886----may be due to more stores.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 09:31
It is more like a quant. DS question

assume that unemployed people are U, and employed people are E,
if U/(E+U) decreased, there are two options:
(1) U decreased --> number of unemployed people decreased ; or ;
(2) (U+E) increased --> which can happen by either an increase in U or an increase of E or by Both

By analyzing the choices:
(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
Irrelevant!: it doesn't affect the statistics. Besides, employees may quit their jobs if their is an abundance of better jobs (which may weaken the author's argument)

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
Perfect!: the total available work force = (U+E), which if increased, opens several possibilities including that U may have increased along with E. --> so it validates the author's doubts

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
Out of scope: Rejected analogy as what happened in one state doesn't imply its repetition in other states.

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
Out of scope!: we are not discussing salaries at all.

Irrelevant!: the size of advertisement doesn't reflect the size demand or number of vacancies

B
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 09:33
Pre-Thought :
One of the crucial things before analysing this question is to understand what unemployement rate really means.
Unemployement rate is simply => ( # of people actively looking for jobs)/ # total people in the jobs

Now, when we say that this job pool is the workforce, then both Unemployed and employed people are part of SAME workforce.
That is why unemplpyement rate is :
#Un/#(Un+E)
where Un= Unemployed E = Employed.

Now the argument says that even if the Unemp rate DECREASED, doesn't mean that # of Un decreased. How this discrepancy could be looked into?
Well, mathematically speaking a ratio DECREASES when:
i) Numerator decreases and denominator remains relatively same
ii) Numerator relatively remain same and denominator increases.

So argument says that i) did not happen . Then ii) has to happen somehow right? Any option that says ii) DID happen, is our answer.

A. This option says that average time of STEADY JOBS dropped. But what about the variables Un and E. Do they relate to TIME in any case? No. ELIMINATE

B. CORRECT. Precisely what we came up with

C. Well, Other mid-western states have nothing to do here until and unless we draw some similarity of those states with Prelandia. If we say something like both had similar population and demography and their initial unemp rates were similar and much more. So this will not explain what argument demands. ELIMINATE

D. This option would actually WEAKEN the argument. If many workers are DISPLACED, then actually the workforce decreased. With denominator decreasing how do you explain the value of fraction becoming less? ONLY when numerator decreases as well. So this will give a NEGATIVE EFFECT to argument. ELIMINATE

E. Completely irrelevant because there are no linkages.

Regards,
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The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 09:46
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

Unemployment rate = Number of unemployed people / Number of people in total available work force
If Unemployment rate has decreased but number of unemployed people has not decreased then it is possible that number of people in total labor force have increased.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886Unemployment rate is unaffected by average time that employees stay in any one job. Incorrect

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
The total available work force, including those with and without employment, increased between 1881 and 1886. Therefore, it cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881Correct

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
This is irrelevant and incorrect

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
This is unrelated to unemployment rate and number of people unemployed. Incorrect

This is irrelevant and incorrect

IMO B
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 10:14
The correct answer is option B.
Percentage does not say about absolute number. A decrease in percentage does not necessarily means that the total number of unemployment has decreased.
Thus if the total number of work force has increased, it means the exact number of unemployment may have increased.
20% of 100 is 20
10% of 1000 is 100
Here the percentage has decreased but the absolute value has increased.

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 10:19
Answer should be B since the number of total workforce increased, unemployment percentage decreased
IMO B
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The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 10:49
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

Type: Inference or missing information to conclusion. and fill in type
if we break it down : ___ -> unemployment rate decreased , but the actual number being decreased is not sure
missing information : how the number can be increased despite rate being decreased .
Goal: to find the missing information.
Analysis: so if rate decreased but number wont decrease if the proportion decreased but the actual increased. lets look for this along with others.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
even if average time in one job dropped it wont lead to unemployment. so this wont lead to our non conclusion. so wrong.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
matching our analysis.unemployment rate is total unemployed / total workforce(employed + unemployed)
so if both increased but inproportion if total unemployed decreased then the rate will decrease. so the total unemployed actually increased. so the conclusion is number actually increased. hence as per the question we cannot conclude that it got lowered during then. BINGO WE GOT IT.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
(higher in mid western wont decrease or increase in prelandia. hence wrong.)

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
even if pay varies, it is just a change of status in employed. no information of unemployed . or its rate. hence wrong

advertisement is irrelavant to actual employed or unemployed . so this is wrong.

hence ans is B
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 11:50
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that The unemployment rate in Prelandia in 1881 was 8% because ________.

Let's get the meaning:
1. The unemployment rate in Prelandia in 1881 was 8%.
2. The unemployment rate in Prelandia in 1886 was 7%.
3. Taking into consideration this drop, one, however cannot say that The unemployment rate in Prelandia in 1881 was 8%
4. Because:
- In our own words, even if UR was drop to 1%, this has no direct relationship with the number of people who was without job and with job can vary dramatically, but in average rate can be the same, so we need to look for the answer that states something about number of people with or without job to complete this argument.

POE

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
This information has no impact on UR, we don't need to know whether employees did overtime or not.

(B) The total available work force, including those with and without employment, increased between 1881 and 1886
This is in line with our understanding of the passage, it completes sentence correctly with contrasting information needed.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers
Again, not related information, some type of jobs were replaced by other type of jobs, but this situation doesn't affect to the number of employees working and unemployment people

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(no one is ideal, please correct if you see any mistakes or gaps in my explanation, it will be helpful for both of us, thank you)

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 12:15
Quote:
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
(B) The total available work force, including those with and without employment, increased between 1881 and 1886
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers

This is a reasoning question.
Passage says that even though the rate has reduced, it cant be concluded that the number of unemployed people have gone done.
Pre-thinking:
Unemployment rate = $$\frac{No. of unemployed}{total no. of ppl}$$
Therefore if the number of people increases with the no. of unemployed being same, the rate will reduce.
for eg.
in 1881,
rate = 8 = $$\frac{8 (No. of unemployed)}{100(total no. of ppl)}$$
in 1886,
rate =$$\frac{8 (No. of unemployed)}{200(total no. of ppl)}$$
= 4.
Hence even if No. of nemployed is unchanged, rate is reduced.

Option B correctly represents our prethinking.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 12:33
This is the assumption argument, and we need to look for an assumption that explain the decrease of unemployment rate couldn't help explaining the decrease of unemployed people.
---->Gap: basing on the unemployment rate to conclude the unemployed people, so we should find a new and relevant info to close this gap.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886

(B) The total available work force, including those with and without employment, increased between 1881 and 1886. ---->The total available workforce includes those with and without employment won't change, unless new people coming.--->No affect answer.

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881.--->No affect answer, as comparing to other states doesn't explain anything.

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers.---->This is what we have left after POE.

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 13:52
Quote:
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
(B) The total available work force, including those with and without employment, increased between 1881 and 1886
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers

This one is easy peasy
If the % of unemployment dropped then it does not imply that the no. of people has decreased
e.g in 1881 total no. of such people was 8 from total of 10 -> 8%
in 1886 total no. of such people increased to 10 from total of 143 -> 7%
Clearly the no. has increased however the % has decreased, therefore Option B is the clear winner.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886- irrelevant in determining the no. of people
(B) The total available work force, including those with and without employment, increased between 1881 and 1886 - Bingo!
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881 - We are not concerned about SOME, also we do not know what is the relation between those some and Perlandia
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers- that requires many extra layers of assumptions before arriving at conclusion, out of focus
(E) help-wanted advertisements increased between 1881 and 1886- $$out of focus$$
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 14:09
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886
(B) The total available work force, including those with and without employment, increased between 1881 and 1886
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers

This is a GMAT question which may be understood even before you see the possible answers. And this is a nice feeling.
We should not be confused by percents, because the total available workforce may increase. It's intuitive and obvious thought.

So the right answer is B

Have a nice GMAT weekend!
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 15:55
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 —> not true ,this actually opposite

(B) The total available work force, including those with and without employment, increased between 1881 and 1886 —>Nope!

(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881—> looks good

(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers—> opposite of what we want

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 19:04
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

In first sentence we have information in percentages that the percentage has reduced. And then it is saying even if the percentage has decreased the number might have not reduced.
This paradox can only be solved by giving info about actual numbers.

B is the only option which is talking about it.
Correct option: B

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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 20:40
The answer is (B) The total available work force, including those with and without employment, increased between 1881 and 1886

Because if the work force were to increase, the total base from which the unemployment % is taken (unemployed / total base x 100%) will also increase. This means the actual number of unemployed may be higher compared to before even if the percentage had decreased.
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Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe  [#permalink]

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19 Jul 2019, 21:01
The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 percent in 1886. It cannot, however, be properly concluded from these statistics that the number of unemployed people in 1886 Prelandia was lower than it had been in 1881 because ________.

(A) The average time that employees stay in any one job dropped during the period 1881 to 1886 ; not correct
(B) The total available work force, including those with and without employment, increased between 1881 and 1886 ; correct
(C) In some mid-western industrial states, the unemployment rate was much higher in 1886 than it had been in 1881 ; irrevelant
(D) Many of the high-paying industrial jobs available in 1881 were replaced by low-wage service jobs in 1886, resulting in displacement of hundreds of thousands of workers

IMO B
Re: The unemployment rate in Prelandia fell from 8 percent in 1881 to 7 pe   [#permalink] 19 Jul 2019, 21:01

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