Business, 21.06.2020 16:57 GreenHerbz206

Demographic studies show that the proportion of teenagers and minorities in the U. S. population is likely to increase in the near future. In your opinion, what implications, if any, will this trend have on the unemployment rate?

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Answer from: emory238

Demographic Studies and Increased Proportion of Teenagers and Minorities

Implications of the Trend on the Unemployment Rate:

a) Labor Force Participation Rate: If the population of teenagers and minorities increase proportionately in the near future, there will be an increase in the labour force participation rate. This means that more people are vying for the available jobs. This puts pressure on the economy to create more sustainable jobs. However, this holds true if all other things are held constant. Obviously, the increased population of these demographic groups will push industries to create jobs in pursuit of the huge demand placed by the groups for more goods and services.

b) Increased Industrial growth reduces the unemployment rate. The resulting increased demand for goods and services required by these groups will increase industrial growth. This will in its turn reduce the unemployment rate.

c) Another implication of the trend on the unemployment rate is that the increased population of these groups will lead to social mobility. Social mobility happens when people move out of their social class to lower or better social classes. Social mobility affects the unemployment rate in any demography. When educated people accept menial jobs, while it may appear that they are working, they are obviously still within the unemployment bracket because they will be searching for jobs.

Explanation:

a) Unemployment rate is the number of unemployed people as a percentage of the labor force. The labor force comprises those who are unemployed plus those who are in paid or self employment.

b) Demographic studies are the studies conducted about a population based on factors such as age, race, and sex.

Answer from: Quest

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Answer from: Quest

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