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
An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs.
After an unsuccessful search, some of the laid-off workers quit looking for new jobs.
Numerous students graduate from college but cannot find work.
Numerous students graduate from college and immediately begin new jobs.
A stock market boom induces newly enriched 60-year-old workers to take early retirement.
Advances in health care prolong the life of many retirees.