Discuss how unemployment has a very negative impact on growth of economy.(Question for 5 marks)
Pls give the answer correctly or else i have to report.
Answers
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Here is your answer ____________
What are effects of unemployment on economy?
Unemployment is like a backbone fracture in an economy. Unemployment directly affects a country's economic growth. if a country has high unemployment rate than definitely there would be no production and without Production a country's economy couldn't survive.
If we talk about effects than there are many direct and indirect effects ( long term effects) on a country if it face high rate of unemployment. You can observe today's employment environment in india and can feel the difference after demonetisation and GST . In Oct quarter India's unemployment rate has increased marginally, resultant economic growth directly decreased by 1 basis point. ( May be some other causes but unemployment has its own effect)
Direct Effects on a country:-
Slowdown in country's growth
Poverty
Loss the Credit of country on international stage
On country's share market
Low production
Reduction in tax collection
Loss of young talent
Indirect ( long term )effects on society and economy
An Increase in crime rate
Reduction in per capita income
Elopement of young talents
Low living standard
Health issue like Malnutrition,starvation etc.
So where Unemployment affects a country's growth on one side it has bad long term effect on the other side.
Hope it helps you
Unemployment is like a backbone fracture in an economy. Unemployment directly affects a country's economic growth. if a country has high unemployment rate than definitely there would be no production and without Production a country's economy couldn't survive.
If we talk about effects than there are many direct and indirect effects ( long term effects) on a country if it face high rate of unemployment. You can observe today's employment environment in india and can feel the difference after demonetisation and GST . In Oct quarter India's unemployment rate has increased marginally, resultant economic growth directly decreased by 1 basis point. ( May be some other causes but unemployment has its own effect)
Direct Effects on a country:-
Slowdown in country's growth
Poverty
Loss the Credit of country on international stage
On country's share market
Low production
Reduction in tax collection
Loss of young talent
Indirect ( long term )effects on society and economy
An Increase in crime rate
Reduction in per capita income
Elopement of young talents
Low living standard
Health issue like Malnutrition,starvation etc.
So where Unemployment affects a country's growth on one side it has bad long term effect on the other side.
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