Question

unemployment

What might be the impacts to the economy in the short run? What might be the impacts to the economy in the long run? Do you think this is a beneficial way to look at the issue? Why or why not?

Answer 1

Unemployment is a situation when a capable and willing to do jobs workforce does not get work. There are various kinds of unemployment like cyclical unemployment, frictional unemployment, seasonal unemployment, structural unemployment, full unemployment, under unemployment, disguised unemployment etc.

During unemployment unemployed individuals not only lose income but also face challenges to their physical and mental health, unemployment has caused to a society that are more than just financial. Governmental cost to beyond the payment of benefits to the loss of the production of workers with reducers the gross domestic product.social cost of high unemployment include high crime and reduce rate of volunteerism.

In short run and long run impact to economy because of unemployment:- governments rightly fret about the consequence of inflation but unemployment is likewise a serious issue. Apart from the social unrest and disgruntlement that unemployment can produce in the electorate high unemployment can have a self perpetuating negative impact on businesses and the economic health of the country.

The economic cost of unemployment are probably more obvious when view through the lens of national cheque book.unemployment leads to higher payment from state and federal government for unemployment benefits food assistance and medicaid. The cost of unemployment to the individual are not hard to when person loses their jobs there is often an immediate impact on that persons standard of living. Prior to the great recession the average savings rate in the US had been drifting down toward zero.

unemployment is calculated as a percentage by dividing the number of unemployed individuals by the number of all the individuals currently employed in the the workforce. An economy that has high unemployment is not using all of its resources efficiently special labor. When individuals accept employment below their skill level the economy is efficiency is reduced further. Workers lose skills which causes a loss of human capital.