Fatima Kapasi 01–15–2019
Unemployment in USA
Unemployment rate is the number of people who are willing to work but are unable to find a suitable job for them.
Unemployment in US economy has much of negative effects on the economic growth. These are mentioned as follows:
Brain Dane: Unemployed people will move out of the country and migrate to other countries, where they get suitable job
opportunities. This is again a loss for the US economy, as otherwise those people would have contributed in increasing the
GDPof the economy.
Effect on the growth of the companies: Companies have to pay additional tax to the government to compensate for
unemployment benefits offered by the government. Thus the companies would incur high cost and they cannot hire
additional labor force because of increasing costs. Moreover, as the standard of living is low due to unemployment, it would
lead to less demand of products in the market, so, due to high cost and low revenue, the overall profits of the company
