Question

Why is underemployment bad for the economy? ​

Answer 1

Explanation:

With inadequate income, families do not consume as many goods and services as before. The reduction in demand leads to slow business growth, pushing the economy toward a recession or depression due to low Gross Domestic Product (GDP) Also, GDP can be used to compare the productivity levels between different countries.

Answer 2

Answer:

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Explanation:

An economy with high unemployment is not using all of the resources, specifically labour, available to it.High unemployment can also cause social problems such as crime. If people have less disposable income than before, it is very likely that crime levels within the economy will increase.