Economy, asked by suj5idiangee1thi, 1 year ago


A mine worker was retrenched because the gold mine he worked for reduced production due to a dropin the gold price...in what type of unemployment does he/she fall under????!

Answers

Answered by gotu65
2
Many mine workers are getting retrenched because mines are not expecting a recovery in prices soon.  Trade unions suspect lay\offs to curtail their negotaiation powers. 
Wages will have to be reduced. But in a recession, if you cut wages, then spending will be reduced and this will reduce demand. So it has a spiralling effect. 

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