Question

Data on the unemployment rate for workers aged 16–19 and for workers aged 20 and over is listed in the table below. How do they differ?

	Unemployment rate (percent)
Both sexes, 16–19 years	13.9
Men, 20 years and over	3.9
Women, 20 years and over	3.6

Source: The Bureau of Labor Statistics (www.bls.gov), January 2018.

Workers aged 16–19 have unemployment rates that are  (Click to select)  the same as  higher than  lower than  adult (above 20) unemployment rates.

The reason for this is  

• younger workers are more likely to be cyclically unemployed, as they change jobs more often.

• older workers are more likely to be cyclically unemployed, as they lack the skills required in the contemporary labor market.

• younger workers are more likely to be frictionally unemployed, as they change jobs more often.

• young workers are less likely to be structurally unemployed as they have more experience with Information Communication Technology.

If the share of the labor force aged 16–19 falls, we would expect the average rate of unemployment across the whole workforce to be  (Click to select)  the same  higher  lower  .

Answer 1

The unemployment rate of workers aged 16-19 is 13.9 percent.

the unemployment rate of Men, 20 years and above is 3.9 percent while the unemployment rate of women, 20 years and above is 3.6 percent.

So,

Workers aged 16-19 have unemployment rates that are higher than adult (above 20) unemployment rates.

The reason for this is -

Young workers are more likely to be frictionally unemployed, as they change jobs more often.

If the share of the labor force aged 16-19 falls, we would expect the average rate of unemployment across the whole workforce to be lower.