Among the factors that define economic growth and development, human resources and unemployment are considered to be the most vital. The well-trained and educated labor force has a significant and direct effect on the economy by producing a high-quality product. However, the problem is not only in finding sufficiently trained workers but in the inability to create workplaces for them. In many countries, some individuals are available and ready to work, yet they are not able to find a suitable job.
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According to The Economics Daily, the current rate of unemployment in the U.S. is only 3.6 percent, which is low enough to consider the United States a country with a developed economy. However, even the U.S. faces problems related to unemployment that harm the country’s economic development. Part of the U.S. economy outcome is spent on personal consumption and unemployed workers, which leads to GDP reduction and inefficient allocation of the country’s resources.
From the previously discussed U.S. economic pattern, it is evident that Turkey, whose unemployment rate is 13.3 percent, will experience its effect on the economy to a much greater extent. The main concern with unemployment rates in Turkey is that it varies between the regions, which causes a massive gap between social levels. Also, the main factors that have an influence on the decreasing economic development of Turkey are women and youth unemployment and the inability to provide workplaces for the considerable workforce.
To conclude, unemployment rates have a significant adverse effect on the economy of both developed and developing countries. It is an efficient tool in defining whether a country’s economy is developed or not. Usually, countries with an improved economy can provide the well-trained and educated people with work, while countries with developing economies are unable to meet the number of workforce.