Question

Economic downturns are generally associated with:

A) high turnover.
B) lower unemployment rates.
C) more competition for qualified employees.
D) an overwhelming number of job applicants for vacancies.
E) skills shortages.

Answer 1

Economic downturns such as recessions lead to increased unemployment due to companies downsizing. This causes financial hardship for those laid off and often a surge in job applicants for limited positions. Wage increases are also rare for employees who remain.

Step-by-step explanation:

Economic downturns, which include recessions and depressions, typically involve a slowdown in production and business activity. This slowdown frequently leads to companies laying off or firing their employees, contributing to a rise in unemployment. The loss of jobs not only imposes financial and personal costs on affected workers and their families but also reduces the likelihood of wage increases for those still employed. Indeed, employees may even face pay cuts. Moreover, during these economic downturns, there is often an overwhelming number of job applicants for the few available vacancies, and not more competition for qualified employees, skills shortages, or lower unemployment rates.