Impact of unemployment on business operations?

Answer 1

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

I'm not sure if this answers what you want to know, but I'll answer it how I understood your question.

What determines if people are employed or not in a business is where the business chooses to employ people. It is much cheaper for the business to hire workers in India or China compared to Australia or America. This is because the people in Australia require higher amounts of pay to survive as everything in Australia is much more expensive than in India or China. So if a people does not need much money, then they will be employed for a much cheaper cost. That is why India and China is favoured by so many companies.

Answer 3

Unemployment forces fewer employees to do the work of more people. This can cause stress, costly mistakes in orders or production and low morale.