Which of the following statements about employment agencies is true?

A) State employment agencies are supported by a special tax on wholesale products.
B) Private employment agencies only serve professional and managerial labor.
C) Employment agencies are a form of internal recruitment.
D) State employment agencies tend to be small organizations with very limited lists of potential employees.
E) The Social Security Act provides that most workers who have been laid off must register with the state employment agency in order to be eligible for unemployment benefits.

The Social Security Act does indeed require most laid-off workers to register with the state employment agency in order to be eligible for unemployment benefits. None of the other statements are true. State employment agencies are funded through taxes on employers, not a special tax on wholesale products. Private employment agencies serve a variety of labor and not just professional and managerial labor. Employment agencies are a form of external recruitment, as they assist in bringing new hires into an organization. State employment agencies can be quite large and offer extensive lists of potential employees.