Understanding the Link Between Recessions and Unemployment

At KB Staffing, our goal is to keep the Polk County workforce employed and the Central Florida economy healthy. However, sometimes factors outside of our control cause economic stress, such as in the case of recessions. At KB Staffing, we keep an eye on these types of events, because recessions tend to bring high unemployment rates, and that’s where our years of staffing experience come in handy.

The Relationship Between Recessions and Unemployment
What causes a recession and how it then impacts society is too big a topic for just one KB Staffing blog post, but we can simplify it by considering the association between a recession and high unemployment rates.

A recession is defined as a period of time in which economic activity significantly decreases. This generally lasts for at least a few months. Factors like household employment, payroll numbers, personal expenditures, retail sales, industrial production, and unemployment rates are all taken into consideration.

Since a recession is a decrease in economic activity, demand for products goes down, so manufacturing production slows down, resulting in fewer man-hours needed to staff production lines. This ripple effect continues, as unemployment rises, meaning less money in consumers’ pockets and less demand for products. 

Though high unemployment is a sure result of a recession, that figure tends to peak after the recession has ended and a recovery has begun. The recession ends as economic activity picks up, so it takes some time past that point for employment numbers to rise correspondingly.

Unfortunately, many of the workers who lose jobs during a recession wind up unemployed for a relatively long time. This has a number of negative impacts on social and economic well-being, not to mention the effects on the individuals populating the ranks of the unemployed.

When Hard Times Hit, Count on KB Staffing
We can’t control the economic climate, but KB Staffing can help you find work and regain your stability when times get rough. Our full-time temp jobs and temp-to-hire jobs can be a real blessing when uncertainty rocks the boat of your household’s finances.

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