Why is a change in the age structure of the population, increasing the
proportions of young or old...

Question

Why is a change in the age structure of the population, increasing the
proportions of young or old workers in the labour force, likely to change the
natural rate of unemployment?

David · Accepted Answer

Why is a change in the age structure of the population, increasing the proportions of young or old workers in the labour force, likely to change the natural rate of unemployment? Provide nearly 1 page.
The natural rate of unemployment (NRU) refers to the unemployment that exists in an economy when all its resources are fully utilised. Those who remain unemployed are frictionally unemployed- they are between jobs and/or not unemployed for continuous and long period. It was propounded by Friedman and Phelps,

Why is a change in the age structure of the population, increasing the proportions of young or old workers in the labour force, likely to change the natural rate of unemployment?

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