One factor that raises the natural rate of unemployment is:
A) a population boom that increases the number of young workers joining the labour force.
B) the loss of labour union membership across industries.
C) the loss of retirement funds so that more people in the baby-boom generation continue to work past the typical retirement age.
D) the use of new technology in the workplace that increases labour productivity.

Question

Quizplus · Accepted Answer

A population boom that increases the number of young workers joining the labour force raises the natural rate of unemployment as the new entrants require time to get trained and find suitable jobs. This increases the supply of workers without creating enough job opportunities, leading to higher unemployment rates.

One Factor That Raises the Natural Rate of Unemployment Is