What happens during a jobless recovery?
A. The GDP increases and more people are hired immediately
B. The economy grows but unemployment stays high
C. Wages and prices fall at the same rate
D. The government hires all unemployed workers
Answer (2)
The correct answer is letter B. The economy grows but unemployment stays highIn a jobless recovery, businesses start producing more, but they don’t hire new workers right away. This happens because companies find ways to be more efficient with fewer workers. It’s frustrating for people who lost jobs during the recession because even when the economy improves, they remain unemployed for a while. For example, after the COVID-19 pandemic, some industries in the Philippines increased production using digital tools, but did not hire all their old workers back right away.
The correct answer is B. The economy grows but unemployment stays high.A jobless recovery occurs when the economy begins to grow again (as indicated by rising GDP), but this growth doesn't lead to a significant increase in employment right away. Companies may increase output using existing resources or through automation, without hiring new workers. This leads to a lag between economic recovery and improvement in the labor market.
