How To Deal With Low Employment Rate Caused By Inflation?

Good-Guy

VIP Contributor
In one of my posts, I have started a discussion about the effects of inflation on world economy. I live in Pakistan and the ratio of inflation has increased drastically in the recent few years and this is one of the main reasons why people are not able to find jobs. When the price of products and commodities increase, the cost of labor also increases. This means the employer needs to pay more if he hires more people. Thus, an employer avoids hiring more labor and tries to over-burden the current labor or employees in the workplace. This means low employment percentage and an increase in poverty. In many developed countries, the inflation rate is quite high, but they also earn a good amount of money and this is why they are simply not affected by inflation in any way. but what about Tier 3 countries? The main question is: How can we deal with high unemployment rates caused by inflation?
 

Mataracy

VIP Contributor
You are correct. One of the way to deal with low employment rate is that when a country help in reducing the price of commodity and by so doing the employer of the country will definitely be more hand to employ in their company which will really help a lot of people to gain employment.
 
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Deleted member 28127

Guest
The problem in some countries is that employees of state salary are increasing year after year then the country couldn't provide employment to new workers just because the successive increase of salary prevent state to involve new employees by the way the new workers must wait until some state employees go to retirement to have some chances to replace them or replace the missing places, this will let the rate of unemployment increasing year after year because of this all conjecture. So it will be hard to find a place except if you will run your own project and this is also very hard.
 

Suba

Moderator
Staff member
Inflation occurs if prices rise above ten percent every year, the unemployment rate will be higher, the role of the government and investors is needed to be able to solve this problem, especially in fostering and providing capital, to small and medium enterprises, so that it will improve the environmental economy. and reduce unemployment.
 

btaliat

VIP Contributor
The best thing to do is to learn skill. This will reduce the rate at which people depend on work for survival
 
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