What Are The Effects Of Inflation On Employment Rate?

[Good-Guy]

The percentage and ratio of inflation can have a major effect on the world economy. Many people believe that the world economy was fine before the pandemic but this is a misconception. The world economy was already struggling before the pandemic but it seems like the effects of pandemic can still be seen today. The situation only became worse now and it looks like the economic condition will only become worse right now. I reside in a place where the inflation rate is growing massively due to rise in the prices and depreciation of value of the local currency. This is has been also impacting the job sector in my country. I believe that the inflation and high unemployment rate have a really deep connection with each other. What do you think?

 

[Lens1000]

Inflation is an enemy of the economy and as such it would have a negative effect on the economy. Once the economy is shambles , the unemployment rate would skyrocket. The Inflation rate is directly proportional to unemployment rate.

 

[btaliat]

Inflation discourages saving as it reduces the value of currency.