When students graduate from college, they leave the classroom and begin looking

Question

When students graduate from college, they leave the classroom and begin looking for a job. For each of the labor market statistics, determine if the unemployment rate and the employment population ratio increases/decreases/does not change. Assume that the adult population is 18 years and older.

a. Suppose that right after graduation, a large group of 22-year-old students begin their job search, but cannot find work for the first three months.

b. Now, after three months of job search, the labor markets begin to heat up, so that they all find part-time jobs as baristas at local coffee shops. How would the two statistics change, relative to part (a) [i.e., assuming that you're starting point for the labor market statistics are after part (a) has occurred]

c. When the students become baristas, what question would you ask to determine which student is part of the underemployment rate statistic?

d. Suppose that a large decline in the stock market forces some retirees to "un-retire," and reenter the labor force on a new job search.

Explanation / Answer

a) When a candidate is actively looking for a job but is not able to find one he/she is considered in labor force and umemployed so unemployment rate will increase, employment population ratio (EPR) is employed people in total population, ass they were already in the working age population so it does not change.

b) in comparision to a) the unemployment rate will be reduced, because being a part-time employee now they are considered employed. And EPR does not differentiates between part-time or full-time employment so EPR will consider them emplyed and will rise.

c) Underemployment means that that current emploment situation is not satifactory for the employee. Now the question we need to ask these students who are working as baristas is about their educational qualification and their future aspirations which will clearly state whether they are underemployed or not.

d) As now labor force and no. of unemployed people has increased so unemployment rate will increase and as working population will increasse but no. of employed remain same so EPR decreases

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