Hi, I just had a game here I ended up with 0 unemployment, and I noticed that the unemployment rate decreased productivity. I looked up the simulations.csv file and found out that WorkerProductivity is affected by Unemployment based on the formula Unemployment,-0.08+(0.16*x),2. Isn’t this supposed to be opposite? Wouldn’t a low unemployment rate increase the productivity, and vice versa?
Way I see it productivity is the efficiency of the people who are at work so unemployment shouldn’t affect it one way or another.
If you raise funding for robotic engineering, that leads to higher productivity and higher unemployment at the same time. So the two are indeed related, and that’s probably where he is wondering about.
The relationship is working as intended.
If unemployment is high, you have a lot of people competing for each job. If you are slacking off at work, they may decide to replace you with one of the eager crowd outside.
Conversely, if businesses are struggling to get enough workers to fill their posts (ie, unemployment nil) then they will be more willing to accept a candidate who isn’t giving his all.
Exactly, unemployment causes productivity by making people fear for their jobs. It’s one of the very few economic upsides!
Sorry, although it’s not the focus of your question but I’m still asking: How can you have 0% unemployment ?
From an economic point of view, it’s impossible to reach 0% unemployment. Actually, you may succeed to implement the best employment strategy to get unemployment level to the very down, that minimum level would be probably 1% but can not go further below: this threashold is called the incompressible unemployment rate … Hope that the game takes into account this subtility.