How does unemployment affect business?

Answer 1

Unemployed people will almost always have less money to spend than employed people do, so the businesses will not make as much money as they would if the people were employed. In situations where very large percentages of people become unemployed, many businesses have to close.
When there are a lot of people unemployed the amount of money available with the public for spending will come down. So people would not be able to buy things they want. This in turn would directly affect business. the sales and profits for shop owners would come down.

Answer 2

Employment of unemployment have a direct impact on all businesses. People buy products and services and if they do not have a job they will buy less products and services. That is why increasing unemployment often results in many businesses reducing inventories because they expect to sell less.

Answer 3

If a business depends on purchases by consumers and families, and if unemployment is locally high, then there will be fewer consumers and families with disposable income to spend and sales will decline.

If a business depends on business-to-business sales, the level of unemployment is largely irrelevant.

Answer 4

Employment is the most important input in a business. The operations of a business is depended on the employment. If the employment are unproductive or unmotivated then the business profits will fall and aims will not be met. If the employment are productive and proactive that means the profits will raise and will go beyond their aims and objectivities.

Answer 5

many businesses are downsizing theur staff complient,outsourcing.privatizing and this is contributed to the high levels of unemlpyment