Ejercicio 3 - Mercat de treball i atur · Introducció a la Macroeconomia UPF 2024

h. In mid-2017, Spain registered an increase in the total number of employed persons alongside a drop in the unemployment rate. Conversely, in December 2019, employment also increased, but the unemployment rate failed to decline. Provide an economic explanation for this divergence.

Solución: The unemployment rate is $u = 1 - N/L$. In 2017, employment growth outpaced labor force growth (%ΔN > %ΔL), reducing $u$. In 2019, the active labor force grew at least as fast as employment (%ΔL ≥ %ΔN), preventing the unemployment rate from falling.