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Economics (AS & A Level) · May / June 2026 · Paper 32 · Question 17

9708Employment/unemployment

What is not likely to increase the natural rate of unemployment?

  1. Atechnological developments leading to a mismatch between the skills of workers and the requirements of employers
  2. Bthe introduction of minimum wage legislation
  3. Cworkers delaying searching for jobs because they have enough savings
  4. Dworkers losing their jobs because of a general decline in economic activity

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Correct answer: D. workers losing their jobs because of a general decline in economic activity

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