Question

how does unemployment percentage of a country affect human/economic development?

Answer 1

The unemployment rate is defined as the number of unemployed people, expressed as a percentage of the total labour force.

Unemployment and economic growth are dependent on one another on many ways, and oftentimes unemployment leads to slower economic growth. Unemployment increases with low economic growth and decreases when the economy begins to grow.

Unemployment has been cited as being a major social evil; a cause the rise in poverty. It produces social as well as economic effect which also is a major issue of society. The problem of poverty among those who are unemployed is often very high due to the fact that these persons are not able to have a sustainable means of income. Looking at it from the social angle, there is an increase in illegitimate means of earning a living. If you consider an environment with high unemployment rate, you will notice that such place has increase in various social vice like gambling, robbery, bribery, prostitution etc. This accounts for the social insecurity issues created by unemployment.

Unemployment percentage indicates the economy is operating below full capacity and is inefficient, this would lead to lower output and incomes. the unemployed are also unable to purchase as many goods, so will contribute to lower spending and lower output.

Unemployment affects the unemployed individual and his family, not only with respect to income, but also with respect to health and mortality. Moreover, the effects linger for decades. The effects of unemployment on the economy are equally severe; a 1 percent increase in unemployment reduces the GDP by 2 percent.

Unemployment leads to low income, low savings, low investment and low national income.