UNEMPLOYMENT during a boom in the economy

A boom in the economic growth of a country happens to be a period in which lower unemployment, a rise in asset prices and a higher GDP persists. But with the rise in employment, people also have to go through a phase of unemployment and there could be many reasons for the same. Some of the reasons may be…

As we all know that a boom in an economy brings with itself a ray of hope for many job seekers to get employment in high-tech industries but there are people who are unfit to the vacancies and so such structural unemployment gains a hold in the economy. It may also happen that a particular industry gives a rise in GDP and if that industry turns out to be some capital intensive industry, not much unemployment is expected to be vanished.

During a boom in the economy, high minimum wages and costly regulations seems to be an indication of a rise in living standard of people but that too, turns out to be a way which could make firms not to hire workers any more and moreover, to lay off some workers to avoid huge costs.

Frictional unemployment could be a reason too, which exists when people leave their jobs and takes time to find a well suited job for them, or when some industry is closing down and there could be other reasons too.

Click here for government certifications