Question

economy of country is widely affected by employment of the people. Justify your answer from the example ​

Answer 1

Employment and unemployment are the driving forces behind economic growth and stagnation. ... As a small business owner, you can affect your local economy by hiring additional workers as long as your hiring is in response to consumer reaction to your company's products and services.



New employment opportunities provide chances for previously unemployed or under-employed workers to increase take home pay and better their meet financial obligations. Increased employee earnings leads to a higher rate of consumer spending, which benefits other businesses who depend on consumer sales to stay open and pay vendors.



When a high level of unemployment exists locally or nationally, economic growth suffers. Consumers save more money and devote less to spending outside of the bare minimums such as food, shelter and servicing debt. Hiring additional employees for your small business stimulates economic growth on a small scale as a byproduct of localized increases in consumer spending. The more money consumers spend on goods and services.

Employing too many new workers can also hurt your company's productivity level as experienced workers must train the new workers. Additional bodies may also harm efficiency at the job site, so it's important to have a working knowledge of how many employees it takes at minimum to create your products and services.