Economic Deflation- Reason for Unemployment

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Unemployment is one of the major and a break through topic of discussion for economists. People looking for job but currently not employed comes under the category of unemployed people.

Unemployment is becoming a social issue because countries are facing a trouble of downfall in jobs due to economics deflation.

Deflation in economy

Any economy works on the criteria of transaction of goods or services on a certain value or price that has been agreed by both the parties. An economy is certainly based on the creation, circulation and finally the consumption of goods or services by economic agents.

Each and every customer pays for the goods or services they purchased; because of this reason economic growth takes place.

Well, deflation in any economy is caused when the price level of goods and services incurred by you decreases. Deflation is just opposite of inflation. It occurs when prices of goods and services in the market declines.

Well, deflation is not a very good sign for any economy and when it occurs consumers get a chance to buy a large amount of goods in the same prices leaving companies in trouble. Deflation occurs when the supply of any good or services is high but the demand of that good or services in the market is not much as compared to its supply. This results in the lowering of the cost of that good or service in the market.

As a consequence of this lower demand of that particular good or service in the market companies tend to face economic deflation as well. Companies produce more goods but due to less consumption they encounter a loss. This results in the layoff of employees and companies actually stops hiring new employees resulting in unemployment.


Unemployment is definitely can be said as one of the diverse issue countries are encountering these days. Skilled people when left without work are said to be unemployed. People are not able to lend work even if they are educated enough and talented causes the serious issues of unemployment in any country.

Unemployment for any country, is a profanity when the youth of that country is left behind without work or any good job even if they are educated enough to find a good job for them.

Finding a job is crucial for peoples to survive and earning is important for livelihood. Unemployment can even bring a family to deprive of the basic facilities of food, shelter and clothes. That is why unemployment is becoming a social and economic issue these days.

Well, recession in an economy can also be an extensive reason for unemployment.

Why economic deflation is a reason for unemployment?

Unemployment being one of the major outcome of the deflation in an economy causes a great effect for the people. People lose their jobs and consequently lose their livelihood. Economic deflation is a reason that actually snatches the food from a family’s table.

Any economy facing deflation actually encounters many problems like decrease in sales of their goods and services, fall in the prices of their goods and services, deflating stock prices and incomes resulting in hike in unemployment rates.

Deflation in an economy can be considered as quite a severe issue that leads to unemployment. Deflation results in the decline in the sales and revenue of any business as the demand and supply of the goods and services vary to a large extent. Supply increases but demand decreases. Business encounter a loss and then they try not to expand at all. This certainly leads to unemployment. Hence, economic deflation can be taken as a reason for unemployment.

If the demand of any particular good or services decreases in the market, businesses starts incurring losses and they try to cut down the salaries of the employees or restricting themselves to hire new people. This also results in the hike in unemployment rates.

Unemployment rate- a new tension

Well, you can understand the pain of a family when they have nothing to eat, because of unemployment. Unemployment is a major cause that people are not able to fulfill even the basic needs of themselves.

People without jobs are roaming with their degrees and certificates here and there to lend a good job, but unable to find. Well, you can say that deflation in economy is a one of the considerable reason for unemployment.

Unemployment increases when a business incur losses and then layoff their employees. Sometime even they don’t hire new people at all, leaving these people unemployed or without jobs.

Our labor force when kept unemployed can be a reason for tension in the society and for economy as well. If unemployment rate increases that can also lead to more suicide rates.
People without jobs can feel depressed and can become a burden on the family. This can leave families destroyed. That is why, unemployment has been taken as a profanation nowadays.

Unemployment rates are increasing that means there is recession in the economy. Recession in the economy is a most apparent reason for the disparity in the demand and supply of goods and services. When the supply of the goods increases but demand decreases, then consequently the goods and services face noticeable price fall. This leads to deflation.

Deflation is the reason for businesses encounter losses, cutting down salaries of the employees, dismissal of employees and not hiring new talents, consequences, an increase in unemployment rates.

Well, increase in unemployment rates is a big tension for economies. It creates a hindrance in the growth of any economy and is not a very good sign for any economy. People tend to lose their jobs and doesn’t find jobs at all even after studying so hard and with lots of effort. This can be a very bad sign for an economy so far. The reputation of the country also is on stake when unemployment rates increases.

Hence, unemployment is an issue which should be addressed justifiably in any country. Economies must try to keep their unemployment rates low.

Economics is generally the most popular social science subjects across most universities, and not without reason. There are plenty of career prospects with the study of this subject. Every year, thousands of students join universities in the U.S and UK for different economics programs, and pursue it as either a single degree or along with some other subject.

Although economics is widely offered as a single honors degree, it also happens to be very popular among students to study it along with various other subjects, which include finance, politics, philosophy, law or languages.

The Popularity of Economics – Career Prospects

Very few qualifications can provide students with the wide range of career opportunities that can be offered by an economics degree. Students of economics can get employment in:

  • International organizations
  • Research and teaching
  • Postgraduate finance studies
  • High street commercial banks
  • Government departments
  • Central banks
  • Higher education and research

They can also get employment in any type of enterprise or company, big or small, in any industry. Economics students enjoy one of the biggest incomes and one of the greatest records of employability, out of all the subjects in social sciences.

These days, most reputed universities a wide range of course options to students who wish to pursue a degree course in economics. Some of the famous combined degree qualifications consist of economics along with finance, accounting, business, politics or even history and sociology.

Job Options with Economics Studies

With a degree in economics, you can be eligible for a wide range of jobs that need a good knowledge of the subject and both transferable and subject-specific skills – which are highly needed by employers. So when studying the course one must not follow short-cuts, clear their conceptions on the varied topics and seeking jobsfrom online resources, fellow students can help one to grapple with the complexities related to the subject.

Some of the top jobs include:

  • Economist
  • Statistician
  • Chartered accountant
  • Chartered public finance accountant
  • Chartered certified accountant
  • Investment analyst
  • Financial risk analyst

A recent study has revealed that economics graduates tend to earn about £8,803 more on an average in professional jobs as compared to those engaged in non-professional jobs. Over 65% of economics graduates happen to get employment in as little time as 6 months after graduation, whereas 1 out of every 5 graduates tends to go on for higher studies.

Only in the UK, 9 out of the top 10 professions are ruled by economics graduates who are in finance, HR or business. Over 500 graduates are in the highly lucrative profession of investment or finance adviser or analyst. Clearly, there is plenty of scope and income opportunity with the study of economics, in whatever way you want so that you have a solid base and can make your career, flourishing!

Economics happens to be a very popular subject across the globe, with students from all major nations flocking to universities for learning it as a single honors subject or along with various other subjects such as finance, law, philosophy, politics, business, accounting, sociology, history etc.

The study of economics means top positions in almost all industries, and high lucre at the same time. Significant income opportunity even in this bleak economy is one of the top reasons students are drawn to this subject. As a student, you can be stuck with an Economics Assignment now and then.

You can get so many topics, case studies associated to Economics textbooks, online quiz, summaries, IB, AS and A2 revision, data with information about specific societies, countries and demographics. You can get general resources for studies, listed by topics. There are helpful blogs and IB lecture notes from teachers. There are also online debates concerning some recent controversial ideas in the field of economics.

  • Blog Posts and Articles

These are helpful for getting section wise notes on IB Economics courses. You can get a fast review and understand from the perspective of expert economists. Although not all articles and blog posts are the best out there, you can get enough useful information about the subject.

  • Essays

These can help you to understand Economics concepts in a more comprehensive manner than blog posts and articles. With Extended Essays online, you can get the chance to avoid some of the common mistakes associated with the subject. This shed light on some of the basic mistakes related to this subject, and can also offer interesting guidance and recommendations.

  • Podcasts

These are important in case you lack the time to read relevant newspapers and magazines, such as The Economist. You can understand even complex concepts quite easily, and get insight into latest trends and concepts of this subject. This is also a great way to know about the recent economic scenario, given that main sections of weekly audio editions of The Economist and other magazines can be made available for you.

  • Videos

The internet is also a great resource of amazing videos on Macroeconomics, Microeconomics and various recent issues. Many of the videos are really good, and can simulate classroom environment for you. There are enough videos on IB Economics courses on YouTube and other video blogging platforms. You can also find simple video showing various philosophies of Hayek, Keynes and other noted economists, with easy to understand instructions.

  • Corporate finance

Corporate finance is concerned to almost all problems regarding corporate companies. It implicates balancing risk and profitability while enlarging the company’s assets. The firm must take care of the following phenomena’s while dealing with it:

a)Recognize stated intentions and controls risk and tax concerns

  1. b) Identify the suitable scheme against flaccid dodging strategy
  2. c) Measure the assorted enactment
  • Personal finance

This funding implicates paying off for loans or debts, education, real estate, cars or whatever related to personal activities. This is the following areas where personal finance is applicable on:

  1. a) Monetary security
  2. b) Sufficient defense
  3. c) Tax planning
  4. d) Investment and building up new goals.
  5. E) Retirement and estate plans

Finance is a subject that is concerned with formation and controlling the production of wealth. But it is not just constrained to this limited course of swapping or managing money. It is an immense topic that reveals the techniques to elevate and collect financial resources over time. The beginning of finance is as ancient as human life on the earth. The term financeis derived from a French word.

Author Bio:

Nancie L Beckett is one of the most reputed professors who guides students for their finance homework as well other finance related problems. Her unique ideas and innovative ways of teaching make her one of the most popular tutors amongst all her students. She also works as a blogger in one of the most renowned websites called where she has been helping students for quite a long time now.

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