Can anyone explain to me why low unemployment = a negative effect on productivity, I thought it would be the other way around.
Lower unemployment will affect productivity.
Basically when there is super low unemployment, and jobs everywhere, anybody can quit their job and get a new one if they desire it, so companies have to compete to get staff, by offering high wages yes… but also a good work environment, no long hours, proper lunch breaks, decent holidays etc…and less time working.
…at the other end of the scale with massive unemployment, people are desperate for a job, and terrified of losing theirs. That mean they will give in to management pressure to work harder, take fewer breaks, do unpaid overtime and come in at weekends etc…
(one could argue that this leads to higher stress and less productivity, this is a matter of opinion, but one has to assume only businesses that actually see higher output by pressuing their staff would do so?)
This is a well attested phenomenon in economics. Average productivity goes up in times of high unemployment because only the most productive workers have jobs.
That totally makes sense, thanks!
Now I don’t have a picture for this, but does anyone know why raising handgun laws raises crime (but lowers violent crime)?
The idea is that an armed citizenry acts as a deterrent towards property crime but means that when crime does happen it tends to be more violent.
Ahhh makes sense