Final answer:
The statement is true because a more educated labor force boosts productivity, leading to increased demand for labor by employers. Data shows that higher levels of education correlate with better earnings and lower unemployment rates.
Step-by-step explanation:
Ceteris paribus, if the labor force becomes more educated, then productivity increases. The answer to this question is True. A more educated workforce enhances the productivity of a company through improved proficiency, specialization, and efficient use of resources. By investing in human capital, which includes the education and skills of the laborers, employers are fostering a well-qualified and motivated workforce, which directly amplifies productivity. Furthermore, skilled workers not only have a higher earning potential, but also contribute positively to economic activity.
The Bureau of Labor Statistics data aligns with this, showing a positive correlation between earnings and education, as well as lower unemployment rates among those with higher levels of education and training. Hence, employers are more likely to demand a well-trained and educated labor pool, causing the demand for labor to shift to the right, a reflection of increased market value and demand for skilled workers.