Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people

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. Effect On... Employment-Population Ratio Scenario Unemployment Rate An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. After an unsuccessful search, some laid-off workers quit looking for new jobs. Decreases As a result of an economic boom, many students drop out of school and start working Increases as soon as they become adults. Stays the same Advances in health care prolong the lives of many retirees.