If a significant number of discouraged workers re-enter the labor market, what is the likely immediate effect on the unemployment rate, assuming no changes in employment levels?

When a significant number of discouraged workers re-enter the labor market, the immediate effect on the unemployment rate is likely to increase. This happens because these workers are now counted as part of the labor force, even though they might not find jobs right away. For example, if 100 discouraged workers start looking for jobs again, but there are no new jobs available, the total number of unemployed people rises. Since the unemployment rate is calculated as the number of unemployed divided by the total labor force, adding these workers increases the denominator and the numerator, leading to a higher unemployment rate. Therefore, even if employment levels do not change, the re-entry of discouraged workers can make the unemployment rate appear worse in the short term.