Critical Thinking: According to the discussion on shifts in the natural rate of unemployment on page...

Critical Thinking: According to the discussion on shifts in the natural rate of unemployment on page 332, how might the rapid aging of the US population over the next 20 years or so affect the natural rate of unemployment?

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Expert Solution

The rapid aging of the US population over the next 20 years or so will affect the natural rate of unemployment demographically because of the elders that are going to retire or the baby boomers and making more jobs available to people coming out of college because there will be more people retired, therefore more jobs available.Overall, the unemployment rate will be low. On the other hand, it is becoming harder and harder for people to retire because of our economy. So if the aging population doesn’t retire when they are suppose to, then there wont be any jobs available for future employees.

As baby boomers retire, more of them should vacate spots in the workplace, but as they get older they'll need more services like health care. That might create more jobs as well.

This will affect the natural rate of unemployment demographically because of the elders that are going toretire or the baby boomers.This can create more unemployment because many are leaving the workfieldbut each year people longevity is getting longer and this can create more jobs service in the health field.This may decrease unemployment.

Rahul Sunny answered 1 year ago

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