Impact of Falling Unemployment Rate on Poverty
Discuss whether or not a fall in a country’s unemployment rate will reduce poverty in that country.
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- Explanation of the topic
- Importance of discussing the impact of job creation on poverty reduction
II. Positive effects of job creation on poverty reduction
- Increase in income for those who gain jobs
- Reduction in absolute poverty as more people can afford basic necessities
- Rise in tax revenue
- Government can spend more on benefits for the poor and education, reducing future poverty
III. Negative effects of job creation on poverty reduction
- Jobs may be part-time, low-paid, or at national minimum wage
- Jobs may be seasonal
- Relative poverty may increase if extra jobs are gained by the well-paid
- Unemployment rate may fall, but unemployment may rise if there are more people in the labour force
- More retired people may live in poverty
- Sick and disabled people may not be able to get out of poverty
- Unemployment is only one of the factors affecting poverty
- Absolute poverty may remain
- Summary of the positive and negative effects of job creation on poverty reduction
- Importance of considering all factors when addressing poverty reduction
- Call to action for policymakers to create sustainable job opportunities that can effectively reduce poverty.
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