Unemployment and Inflation as Threats to the Economy

Before I discuss why Unemployment and Inflation are said to be part of a threat to the economy of a country. We will first discuss what Unemployment and Inflation are and what causes Unemployment, Inflation and other threats to occur.

Unemployment

Unemployment is a condition where a person who does not have or does not have a job, is looking for or is preparing to get a job. Not because they don't want to, but there are several factors that make it difficult for someone to get a job so they become a movement.

Factors that cause disease:

• Reduction of a company's contest

• Incompatibility of the work required with the skills possessed

• There are many entrepreneurs who use modern technology instead of using human power

• because they want to find a better job.

Inflation

Inflation is a condition where the price of an item generally increases continuously. If the price increase only occurs in one or two goods, it cannot be said to be inflation. Except for one or two rising prices of goods can cause other prices to rise as well.

Factors that cause an Inflation:

• Jobs in various economic activities that demand wages

• People's expectations are too high

• The influence of nature that can affect the economy

• The existence of government policies that are economic and non-economic

Then, why are unemployment and inflation said to be one of the problems or threats to a country's economy?

Unemployment is closely related to poverty. Well, the existence of poverty will certainly affect and disrupt the level of stability of an economy in a country. Therefore, unemployment is referred to as one of the threats to the economy.

It is not easy to eliminate this unemployment, but there are several things or solutions that can be done to reduce this unemployment, including:

• Creating wide job opportunities

• Job improvement training

• Improving the quality of education

• Creating entrepreneurship

Inflation is said to be a threat to the economy of a country because a continuous increase in the prices of goods will cause changes in the value of money to market mechanisms.

When this inflation occurs in a country, there are many ways that the government can do with the hope that this inflation can be overcome:

• Carry out the distribution of goods

• Increase production

• Facilitate the entry of imported goods.

And there are several factors that cause threats to the economy to occur:

• Unclear economic system

• Infrastructure development

• Low HR competitiveness

• Political and legal conditions

Well, that was one of the threats that a country often faces in the context of the economy and its causes and how to reduce it. So, with this problem, it is very important that the role of the community is to have and strive for a quality level of education so that the economy in a country is growing and getting better.