GMAT Critical Reasoning: Unemployment and Growth

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GMAT Critical Reasoning: Unemployment and Growth

GMAT question of the day critical reasoning
Explanation
Situation: The country of Lorena has experienced large growth its tech industry while non-tech industries have remained stable. Despite these facts, the country’s unemployment rate has not changed.

Reasoning: We need to find a statement that explains the constant rate of unemployment and the increase in jobs in Lorena.

(A) Incorrect: While this option may explain why unemployment has remained at a constant level, it is in opposition to the fact that Lorena’s non-technical industries have shown no change.

(B) Incorrect: Again, as stated in the passage, this does not appear to be the case in Lorena because the non-technical industry was not affected by the digital revolution.

(C) Incorrect: This option is not an explanation of the discrepancy, but rather it presents a difficulty in the evaluation of data, which is not related to this argument.

(D) Correct: This option explains how the tech industry has boomed and other industries have remained steady while the unemployment rate has not changed. Foreign workers filling the new jobs negates the possible positive effects on the unemployment rate. Despite the growth, the economic situation remains the same for citizens of Lorena.

(E) Incorrect: A growing amount of tech-skilled workers does not explain why unemployment rates have remained constant. If anything, this fact suggests that the unemployment rate should decrease.