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How To Deal With Low Employment Rate Caused By Inflation?
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[QUOTE="Good-Guy, post: 179303, member: 29109"] In one of my posts, I have started a discussion about the effects of inflation on world economy. I live in Pakistan and the ratio of inflation has increased drastically in the recent few years and this is one of the main reasons why people are not able to find jobs. When the price of products and commodities increase, the cost of labor also increases. This means the employer needs to pay more if he hires more people. Thus, an employer avoids hiring more labor and tries to over-burden the current labor or employees in the workplace. This means low employment percentage and an increase in poverty. In many developed countries, the inflation rate is quite high, but they also earn a good amount of money and this is why they are simply not affected by inflation in any way. but what about Tier 3 countries? The main question is: How can we deal with high unemployment rates caused by inflation? [/QUOTE]
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