Why unemployment has a negative effect on the economic development of a country? Give reasons.
Unemployment has a negative effect on the economic development of a country because :
- It is a wastage of human and natural resource as employed people could have increased the productivity of other resources too.
- It increases the number of dependent population and thereby increases the economic overload.
- People cannot support their families or give proper nutrition, education and healthcare to the family. They cannot contribute anything to the national income of the country and per capita income becomes less. The time lost in unemployment creates an adverse effect on the personality of a person.