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The unemployment rate only counts people looking for work. If they quit the labor force completely, they're no longer counted as unemployed. Minimum wage worke
by thehardsphere 9y ago
The unemployment rate only counts people looking for work. If they quit the labor force completely, they're no longer counted as unemployed.
Minimum wage workers are usually the lowest skilled workers in the economy. When they're displaced they have the fewest alternative jobs available to them, so they tend to drop out of the labor force. Either temporarily, while they go and learn new skills, or permanently.
- noodle 9y agoBut that's really flexible, though, right? If a lot of people lost their jobs from minimum wage increases, wouldn't you expect the unemployment rate to increase at least temporarily around the same time while they initially look for new work before falling out of the market?