Question

what are the impact of unemployment in economic?

Answer 1

unemployment means no income to peoples and no income means,people can not pay taxes.Government need taxes for development,hence unemployment also leads to less development.,which may cause the progress of any country.

Answer 2

Unemployment is defined as a situation where someone of working age is not able to get a job but would like to be employed.

Unemployment plays a major role in economics as it is a key macroeconomic indicator of health of the economy. Unemployment effects the economic growth negatively as there are fewer people with jobs, so they have less disposable income to spend on investments.

Economists call unemployment a lagging indicator of the economy, as the economy usually improves before the unemployment rate starts to rise again.

With one person losing his job, that person will not pay state and federal income taxes.

In addition many citizens will be eligible for unemployment benefits which negatively affects the treasury of the country thus increasing the State's deficits and tax revenue.