Question

Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months. other things the same, the unemployment rate

Answer 1

The unemployment rate could fall even as the number of jobs declines if many workers become discouraged and stop actively seeking employment. This leads to a drop in the labor force participation rate and consequently lowers the recorded unemployment rate.

Step-by-step explanation:

When many workers become discouraged from looking for jobs, they may not be immediately counted as unemployed because they are not actively seeking work. This is particularly true during a recession, where jobs are more scarce, and there may be a rise in the number of discouraged workers. If these individuals stop looking for work, they are no longer included in the workforce, which reduces the labor force participation rate.

In this situation, even if the number of jobs declines, the unemployment rate could fall because it is based on the number of people who are actively seeking work. Therefore, a decrease in the labor force can lead to a lower unemployment rate, even when fewer jobs are available.

Answer 2

Other things the same, the unemployment rate would be : Increased and the labor force participation rate will decrease.
The longer Sheamous decided to sit-around and be unproductive, the harder it would be for him to obtain a job. Company tend to no appreciate a job seeker that has a long period of doing nothing in their CV