Question

Why economic development can reduce unemployment?

Answer 1

Unemployment is a situation where the number of jobs is less than the population available, in some cases the jobs may be available but the labour may not be fit enough to take up such jobs. Economic growth is quantitative increase in the of overall level of goods & services produced in the country. Economic development is both quantitative & qualitative increase in the overall level of goods & services produced in the country. If people are unemployed, they can't earn income, they can't save, they won't have any purchasing power too & they won't invest in ventures (vicious cycle). This cycle will directly negatively affect the goal of Economic growth, and consequently in the long run it will further hinder Economic Development.Thanks for the invitation.

Answer 2

It is true that economic development can reduce unemployment.

* unemployment is a condition where population is high where the opportunity to earn money is low.

* If the economic development occurs in a country then there will be a great scope for development in infrastructure and encouragement for industries to support many opportunities for the citizens of the country.

* As Industries increase there will be scope for recruiting people to work in the industries and hence reducing unemployment.

* Even sometimes government may announce schemes to youth who have ideas of Self employment and provide support to them reducing unemployment.