Explanation : For a given working-age population, a decline in the labor force
participation rate, which is often the result of an increase in
discouraged workers, reduces the labor force. If the number of people
employed remain the same while the labor force is smaller, the
number of workers defined to be unemployed must be smaller and the
unemployment rate lower.
Explanation : Different countries use different statistical scope and ratio definitions and
these differences have to be reconciled before meaningful conclusions
can be made from cross country comparisons.