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.