How does unemployment lead to a depressed economy?

How does unemployment lead to a depressed economy?

The contribution to the economy which can be made by employed people gets cancelled. It is a wastage of human resource and human capital. It increases the economic overload of the country. It increases poverty and makes the standard of living low as unemployed people have to adjust themselves to little earnings.

What is an indicator of a depressed economy?

Increase in unemployment is and indicator of a depressed economy. It also wastes the resource, which could have been gainfully employed. If people cannot be used as a resource they naturally appear as a liability to the economy.

Why does unemployment affect the overall growth of an economy?

Unemployment affects the overall growth of an economy as (i) it is a wastage of manpower resource. (ii) it increases the economic overload. (iii) it tends to increase the number of dependent population. (iv) increase in unemployment is an indicator of a depressed economy.

What is economic overload class 9?

Unemployment tends to increase economic overload, i.e., dependence of the unemployed persons on the people who are working, goes up. This adversely affects the quality of life of people, as they have to live at subsistence level, which leads to poor health and even increase in school dropouts.

What does the increase in unemployment indicate?

Increase in unemployment indicates a depressed economy. If people cannot be used as resource they naturally appear as a liability to the economy.

What is an economic depression?

An economic depression is an occurrence wherein an economy is in a state of financial turmoil, often the result of a period of negative activity based on the country’s Gross Domestic Product (GDP) Also, GDP can be used to compare the productivity levels between different countries.

What is unemployment Why does unemployment lead to wastage of resources?

Unemployment lead Unemployment generates no resource and in this way, manpower gets converted into a liability in spite of the asset. Unemployment affects the overall growth of development. It develops despair and hopelessness among youth. In this way, unemployment increases and makes the economy depressed.

What is unemployment explain any four effects of unemployment on the overall growth of an economy?

2) It creates more poor section of the society in the economy which become a burden. 3) Due to the unemployment, consumption and demand falls which lead to lack ivestment and further falls in the growth . 4) It leads to social issues where the unemployed youth become more of a liability than an asset for the economy .

How does unemployment affect the Indian economy?

The overall result of the unemployment is rate is already not so good; while now due to the coronavirus effect, it has left a devastating impact on the economy of India. The Indian economy was expected to lose over 32,000 crore every day during the first 21 days of complete lockdown.

What is unemployment explain any five effects of unemployment in India?

EFFECTS OF UNEMPLOYMENT IN INDIA 1) Wastage of man power resource. 2) People who are an asset for the economy turn into a liability. 3) There is a feeling of hopelessness and despair among the youth. 4) People do not have enough money to support their family and decline in the health condition.