The Effects Of Unemployment On The Economy

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An economic problem can be defined as a fundamental idea that a scarcity of resources exists in the economy. This means in the sense that only finite and insufficient resources are available to satisfy the needs and wants of all human beings. Since resources are scarce the basic idea revolves around how resources should be allocated and utilized effectively and efficiently. Moreover how resources can be put to use to give out a maximum efficient output. Human beings are one of the greatest resources present in the economy. The underutilization of human beings in terms of their expertise as a medium of economic development and progress is one of the leading problems not only just in the United States but also around the world. One of the major problems faced in different economies all around the world is unemployment. Even though the idea of unemployment may seem to be a usual day-to-day problem, the effects of unemployment are adverse on the health and well being of an economy In the United States; unemployment has been fairly low (5% or lower) for much of the past two decades. However even a low unemployment rate affect and undermine economic growth. Let us examine what unemployment means; Unemployment is a situation when there are simply not enough jobs for people who wish to have one. Every economy in the world has some unemployment because people leave jobs (by their choice or against their will) and are usually unemployed for a time before they find new employment.
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