The following table defines some population statistics for two countrries.

If a group of students decided to try to find jobs while they are studying,which of the above rates would change at first? Assume that it takes the students a few months to actually find a job.

Question

The following table defines some population statistics for two countrries.

If a group of students decided to try to find jobs while they are studying,which of the above rates would change at first? Assume that it takes the students a few months to actually find a job.

Quizplus · Accepted Answer

When the group of students starts looking for jobs, the labor participation rate would increase as they are entering the labor force. However, since they are not currently employed, the unemployment rate would also initially increase. It may take them a few months to find a job, so the impact on the unemployment rate would depend on the length of time it takes them to find employment. Therefore, both the labor participation rate and the unemployment rate would increase at first.

The Following Table Defines Some Population Statistics for Two Countrries