If more workers join the labor force of a country the unemployment rate tends to decrease.
A declining unemployment rate doesn't always indicate that the economy is doing well. Even when the underlying employment situation hasn't improved, the unemployment rate will decrease when people give up looking for work and leave the labor force out of discouragement.
For this reason, it's crucial to include changes in both the unemployment rate and the labor force participation rate. You can acquire a more thorough understanding of changes in the work situation by taking into account both developments.
The rate of unemployment exists when an economy is operating at full capacity; during a recession, the present rate of unemployment is higher than the natural rate. The present unemployment rate is lower than the natural rate during expansions.
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