The following table defines some population and employment statistics for two countries.

-Refer to the table above. Due to technological changes, older workers have difficulty finding jobs in Spicy Country. The unemployment rate for people older than 60 is much greater than the unemployment rate for the general population. If a new policy allowed workers in Spicy Country to retire at age 60, what is likely to happen?
A) The unemployment rate will decrease.
B) The labor participation rate will increase.
C) The number of people not in the labor force will decrease.
D) The number of unemployed workers will increase.

Question

The following table defines some population and employment statistics for two countries.
 
-Refer to the table above. Due to technological changes, older workers have difficulty finding jobs in Spicy Country. The unemployment rate for people older than 60 is much greater than the unemployment rate for the general population. If a new policy allowed workers in Spicy Country to retire at age 60, what is likely to happen?
A) The unemployment rate will decrease. 
B) The labor participation rate will increase. 
C) The number of people not in the labor force will decrease. 
D) The number of unemployed workers will increase.

Quizplus · Accepted Answer

Allowing workers to retire at age 60 would likely decrease the unemployment rate because older workers who are struggling to find jobs would exit the workforce, thus reducing the number of people counted as unemployed.

The Following Table Defines Some Population and Employment Statistics for Two