Question

how does unemployment affect the macroeconomic view on Supplies and Consumers in regard to the agrochemical industry?

Answer 1

Agrochemical industries refers to the chemical products produced to support agriculture. The chemical products include insecticides, herbicides, fungicides and nematicides. Environmental Protection Agency (EPA) framed many regulations for the production of agrochemicals. EPA ensures full protection against the evils of agrochemicals which poses serious threat to the environment and the public residing in all the states of USA. According to Macroeconomic concept, the unemployment are categorically classified according to the situation prevailing in the demand, supply and consumers choices in regard to products manufactured in all areas. They are Structural, Fictional and Cyclical unemployment problems.

Among them, Structural unemployment problems are always occupies the strategic position in the agrochemical based industries. In order to follow the rules and regulations of EPA, Fungicides and Insecticides, all firms need to incur huge expenses to curb the poisonous effect of products on environment. For example, Pesticides usage had witnessed the predominant expenditure on Public Health for about $1.1 billion and Loss of Fertile soil which amounts to $1.4 billion. For the health growth of plants fertile soil is very important. By using more agrochemical products, the soil gets polluted leads to loss of fertility and loss of organic substance present in the seeds of the plants.

On Demand and Supply side function as well as consumers (farmers) preference of the agrochemical industry, The status of marketing facing the declining trend. All firms was facing loss due to over cost of production and less demand for the products. This adversely affected the supply side of the goods. And the another reason of creating awareness about organic farming and also transition from chemicals to organic farming lessened the production volume. The above explained facts collectively created the unemployment problem. As firms cut-short the employees in the existing firm of agrochemical based industries and not ready to employ more workers from outside labour force to produce more goods. This is called as Structural Unemployment problem which was coined with the issues prevailing in the agrochemical industries.