Unemployment

Is being willing to work and available for work but unable to obtain a job. High unemployment  is associated with people being less secure about future incomes and become reluctant to spend. During a economic period of recession, income falls and unemployment begins to highly rise leading to people to be less willing to spend their money. If consumers buy less, firms will tend to produce less leading to businesses making redundancies which increase unemployment. However high levels of unemployment can make it easier for businesses to recruit workers.