Economists use labor-market data to evaluate how well an economy is using its most valuable resource—its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed).
Indicate what happens to the unemployment rate and the employment–population ratio in each of the following scenarios.
Scenario Effect On...
Unemployment Rate Employment–Population Ratio
Many previously laid-off workers find jobs in new startup firms as the economy expands.
After a long search, some laid-off workers find new jobs.
As a result of an economic boom, many students drop out of school and start working as soon as they become adults.
Advances in health care prolong the lives of many retirees.
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Economists use labor-market data to evaluate how well an economy is using its most valuable resource...
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