What Is the Relationship Between Inflation and Unemployment?

How Inflation and Employment Are Related?

What Are the Effects of Inflation on Employment?

What Are the Effects of Inflation on Workers with Low Wages?

What Is the Non Accelerating Inflation Rate of Unemployment?

FAQs About Inflation and Unemployment

Does inflation affect unemployment?

A.W. Phillips found a negative relationship between the unemployment rate and the inflation rate, with high unemployment years exhibiting low inflation and low unemployment years exhibiting high inflation.

How does India lower unemployment?


In India, the regulatory bodies reduce unemployment in the following ways: 

  • Labour intensive methods 
  • Population control 
  • Encouraging self-employment 
  • Modifying the educational system

What is the need to solve unemployment?

Poverty is mostly caused by underemployment and unemployment. Therefore, reducing poverty and attaining sustainable social and economic development needs the establishment of possibilities for gainful employment.