When an economy enters a recession, the number of unemployed falls. number of discouraged workers falls. cost of unemployment falls. duration of unemployment rises?

QUESTION POSTED AT 29/05/2020 - 12:56 AM

Answered by admin AT 29/05/2020 - 12:56 AM

I would say the duration of unemployment rises. A recession means that for example in the mining industry the prices of metals falls so the result is that often companies cut back on production and lay workers and staff off, or sometimes shut whole mines down completely. So the employers have a harder time to pay their workers because they may not be making a profit anymore. In mining and mineral exploration these recessions or depressions are cyclical in the capitalist system and usually last at least 4-5 years often with no work for mining people.
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