How could a rapid increase in available jobs lead to an incr
How could a rapid increase in available jobs lead to an increase in the unemployment rate? How could a rapid decrease in available jobs lead to a decrease in the unemployment rate?
Solution
A rapid increase in available jobs may give rise to a skill mismatch between the skills required by the employers and the skills possessed by the employees. This mismatch will lead to an increase in structural unemployment, which will increase unemployment rate. On the other hand, a rapid decrease in available jobs will close the skill gap more than before, decreasing structural unemployment, which will decrease unemployment rate.

