Unemployment bad for the economy.
Oner n.d. — Ceyda Oner, deputy division chief in the IMF’s Finance Department, no date (“Unemployment: The Curse of Joblessness,” no date, International Monetary Fund, Available Online at https://www.imf.org/external/pubs/ft/fandd/basics/32-unemployment.htm, Accessed 06-28-2023)
Back in the depths the global financial crisis in 2009, the International Labour Office announced that global unemployment had reached the highest level on record. More than 200 million people, 7 percent of the global workforce, were looking for jobs in 2009.
It was not a coincidence that the global economy experienced the most severe case of unemployment during the worst economic crisis since the Great Depression. Unemployment is highly dependent on economic activity; in fact, growth and unemployment can be thought of as two sides of the same coin: when economic activity is high, more production happens overall, and more people are needed to produce the higher amount of goods and services. And when economic activity is low, firms cut jobs and unemployment rises. In that sense, unemployment is countercyclical, meaning that it rises when economic growth is low and vice versa.