How does unemployment impact economic growth?

How does unemployment impact economic growth?

Unemployment can significantly hinder economic growth by reducing consumer spending and overall productivity.

Can you explain why reduced consumer spending affects the economy?

Certainly! When people are unemployed, they have less income to spend, which leads to lower demand for goods and services.

What are some long-term effects of high unemployment rates?

Long-term high unemployment can lead to skill degradation, increased poverty rates, and reduced economic output.

Are there any policies that can help reduce unemployment?

Yes, policies like job training programs, tax incentives for businesses, and increased public spending can help reduce unemployment.