Jobs and unemployment overview draft

Jobs and unemployment overview draft

Unemployment occurs where workers who are interested in finding jobs are unable t find jobs. Anghel’s article on “The effect of unemployment on economic growth” and Garz’s “Effects of unemployment on economic growth” are two articles that signify the various impacts that unemployment may have on the economy. In both articles, it is evidently clear that unemployment rates are critical to the success of any given economy. We have various types of unemployment that may occur in any given company that includes frictional unemployment, real wage, Voluntary, Seasonal, and geographical unemployment. The different forms of unemployment all have significant impacts on the general economy.

In various economies, jobs and unemployment are a critical factor in the development of the economy. Once the jobs and employment rates are high, the dependency rates in a country reduce. With low dependency rates, then the economy’s gross domestic product will grow. If there are low employment and job rates, the dependency will be high and, thus, a negative impact on the economy.

Unemployment rates have various effects on the overall economy. One of the impacts, as highlighted in the economics help article, is that with unemployment, we have multiple effects such as loss in gross domestic product. With lesser people employed, the gross domestic product that would have been generated by the unemployed is no longer available.  With higher jobless rates, then the government suffers more in terms of tax collection (Anghel et al., 180). Without generating revenues, individuals will no longer be in a position to create taxes, which will thus have a general effect on the economy.

With lower employment rates, there would be an effect on the multiplier effect of any given society. The negative multiplier effect will be caused by the fact that the economy will not be operating in full capacity (Garz and Marcel, 180). The main reason for this would be the unemployed will no longer be in a position to buy goods. With lower spending, then automatically, this will lead to lower outputs and a higher rise in unemployment that can cause a negative multiplier effect.

In conclusion, macroeconomics is a crucial part of economics. Aspects such as employment are some of the features of macroeconomics that may hurt the general economy of any given country. It is thus crucial for governments to ensure that they try keeping the unemployment rates low to have a sustainable economy.

Works Cited

Anghel, Madalina-Gabriela, Constantin Anghelache, and Alexandru Manole. “The effect of unemployment on economic growth.” Romanian Statistical Review Supplement 65.7 (2017): 174-186.

Garz, Marcel. “Effects of unemployment news on economic perceptions–Evidence from the German Federal States.” Regional Science and Urban E