An article in the Financial Times reports on a trend by college students to take a year off after graduation given the lack of success in finding a job. ʺIn a survey published last month by TMP Worldwide... 54 per cent of the final-year undergraduate interviewees were thinking about taking a gap year and one in 10 was planning to wait for a year to escape the financial chaos and wait for the economy to either improve or for the picture to become clearer.ʺ
These choices add to the fluctuations seen in the as workers leave the labor force given their unsuccessful job searches.
A) efficiency wage
B) employment rate
C) labor force participation rate
D) inflation rate

Question

Quizplus · Accepted Answer

The trend of college students taking a year off after graduation due to a lack of job opportunities contributes to fluctuations in the labor force participation rate. The labor force participation rate measures the percentage of the population that is either employed or actively seeking employment. If more individuals choose to take a gap year or wait for the economy to improve before entering the labor force, the participation rate will decrease.

An Article in the Financial Times Reports on a Trend