Question

How unemployment affect an economy?

Answer 1

as we know that unemployment is one of the greatest weak points of any nation . if every person is employed poverty can be reduced , but if people are still unemployed the nation cannot progress because of poverty . the economy will be reduced because of poverty.

Answer 2

 Unemployment reduces the national productivity.  It reduces the national wealth.  In some countries some allowances are paid to unemployed.  So national funds are used up.  Unemployment increases unrest.  Unemployment causes people to become thieves and terrorists.  So more vigilance, police will be required to maintain peace.  Also unemployment means there is a scope of increase in the economy if they work too.