Arthur · 7 answers · 14d

So there's a study that negatively correlated employment rate with financial and economical performance. Do you agree that unemployment is good for business?

There is a certain degree of unemployment that indirectly makes businesses benefit from it. That rate has to be big enough to keep up social pressure and therefore reduce payment expectations and wages. That rate has to be at a level so that when you need new employees you quickly find a suitable one from that mass of people. On the negative side is that a higher level of unemployment reduces the ability of consumers and the market to spend money on goods and services. That also increases the speed at which money flows through the economy because more people have to spend most or all of their little money for the basics like food and house and such. That pushes inflation which harms businesses. Unemployment also has a cultural and political side which can affect businesses heavily too. So that must have been a short sighted study I guess?

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