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Unemployment (politics)

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sudu | 19:28 Tue 08th Nov 2005 | Business & Finance
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I wasn't sure which topic to post this under so I thought this might be the most suitable. Why does a government want to lower unemployment? I know this really I suppose but i need a way of putting it accurately.


Hope you can understand this-


Thanks!

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A government will want unemployment as low as possible for several reasons:


1. Less benefits to pay out


2. More people in work means more national income and so more tax to collect


3. Employed people spend more so industry stays strong, more sales, more tax etc etc.


4. The unemployed can be considered a social problem as being out of work can be depressing and lead to family breakup/issues etc - a family all in work is a happier family (sounds like a Nazi slogan!)


5. Unemplyment can lead to crime as desperation for money leads to people nicking things etc and being out of work may lead to self harm/drug use/muggings etc etc.


6. There comes a point where over employment becomes an issue as there are few people to go into new industries etc - because of this it is good to have unemployment as it can keep the workforce more mobile in a way, but this may never happen in reality.


Hope this helps.

Question Author
excellent! thanks!

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