O'Level  &

No, I think that reduction in the level of unemployment doesn’t always benefit businesses. This is because some businesses may need skilled workers to work in factories that use production methods such as flow production. However, if there are lesser employees available to work in the job market then the business objectives cannot be met and the number of potential sales reduce, resulting in wastage of resources. Moreover, if there is a low level of unemployment, there will be very few skilled and experienced workers available for hire, resulting in different businesses competing to hire these workers with higher wages. This will ultimately increase recruitment costs. One advantage to low levels of unemployment is that the general public will have more money which will increase sales of the business. However, unskilled workers without experience will have to be trained, increasing training costs and reducing capital on training methods such as on-the-job training. This will be inefficient and decrease the productivity rates of a business. Hence, I believe that unemployment doesn’t always benefit businesses.