Q- ‘Unemployment has a detrimental impact on the overall growth of an economy.’ Justify the statement.
Answer- It is absolutely right that unemployment has a detrimental impact on the overall growth of an economy because an unemployed person has no job and is liability to the economy of a country and if the unemployment increases so the number of liability increase in the economy of country.
This creates a bad impact on the economy of a particular country. To prevent this condition a country should started making investment in human resource to make it human capital. The investment can be made in form of education and health care facility to improve them. This would improve quality of human capital.
Government should also increase employment opportunity to decrease unemployment as unemployment leads to wastage of manpower resources. The people who are asset to the country become liability to the country if he or she is unemployed.