How does unemployment influence and affect economic growth ?

Hi and thank you for asking! Put in simple words, when people are not employed they tend to limit their spending to the most necessary things. This means money that fuel economic mechanisms that foster growth will not be poured significantly e.g. investment, banking and loans (hence interests), house hold equipments, cars, entertainment and leisure etc. So the lack of consumption will reduce the production of goods and services because people won't be able to purchase them.

As a result, the economic growth will slow down which translates in reducing manufacturing, exporting less if the unemployment is reaching outside the country's borders, selling less, utilizing less energy hence pushing employees to the door etc. Very basic but I hope it is self explanatory ! 

Good Question: Unemployment leads to decrease in per capita income and that leads to affect overall GDP/GDI of a country in the long run. So, it has a direct or indirect impact on economic growth. I would say it's a dependent variable. 

Unemployment and economic growth are dependent on one another in many ways, and oftentimes unemployment leads to slower economic growth. Since unemployment is very dependent on economic activity, when economic activity is high there is increased production and a healthy demand for individuals to help produce higher amounts of services and goods.

Unemployment is countercyclical, meaning that it increases with low economic growth and decreases when the economy begins to grow. An example of this pattern is the global recession that began in and led to unemployment of more than million individuals, or7 percent of the worldwide workforce. Many factors influence economic growth but can be divided into two primary groups: the demand side factors and supply side factors. Some factors that can affect economic growth, and therefore employment rates, include incomes and wages, value of exchange rates, asset prices, consumer confidence and interest rates.

Thanks for Invitation

in simple words it has bad impact in society  that losing opportunities and workforce of unemployed people that create problems and overhead the costing society affection of cycle of demand and supply

Less money, less demand, offer will decrease, less consumption...well, it´s the old economic explanation 

Agreed with the experts answer.

Thank you!

Unemployment is universally recognized as a bad thing. While economists and academics make convincing arguments that there is a certain level of unemployment that cannot be erased, elevated unemployment imposes significant costs on the individual, the society, and the country. Worse yet, most of the costs are of the dead loss variety where there are no offsetting gains to the costs that everyone must bear.Fewer tax revenues – Because fewer people are working, there will be fewer people earning enough income to pay tax. As a result, the government will receive less tax revenue and this will have a large impact on the government’s finances.Lower economic growth (GDP) – As fewer people have jobs, firms won’t be able to produce as many goods and services. As a result, the output of goods and services in the economy, GDP, will be lower. This also has an impact on government taxation and spending and will negatively affect their finances.Higher welfare costs – Unemployment in an economy means that fewer people will be working and more people will be claiming benefits. More people claiming benefits creates a drain on the government’s finances and means they have to spend more on benefit payments and less on other areas of the economy – so there is an opportunity cost.Higher supply-side costs – With unemployment in an economy, more people won’t be  working. These people need to be taught skills in order for them to be employable by firms. The government will have to spend more money on training the unemployed so that they have the right skills to be employed in a modern economy. This is also a drain on government finances and this money could also be spent elsewhere.

In my point of view unemployment play a direct and indirect impact on the economic growth of any country... in simple words no job means less or no expenses... resulting in less demand for goods and supply... economic crisis. ... the gdp will come down... less investment, unstable power of currency, stock markets shaky.... unfavorable global market... exactly how things are going these days and few years back.... companies are down sizing coz of less demand by consumers therfore less supply by the companies.... I hope this answer satisfies ur query..

i am agreed with ABDALLAH DADDA...................

Unemployment and economic growth are important factors and dangerous indicators in the economies of developed and developing countries. They are in an inverse relationship.

As the high rate of unemployment necessarily leads to economic rickets, which is the opposite of economic growth

Economic growth leads to an abundance of money and thus leads to the saving of investment that creates demand growth