Economic Recession and Employment in Global Perspective: A study in context to India

Abstract

A national economic depression can affect a country for as long as a year and is characterised by a severe decline in economic activity. Unemployment and a decline in GDP are common during economic downturns. Businesses sometimes have to lay off workers and lower pay when times are bad due to the recession. The result is an increase in the jobless rate. As loan defaults become increasingly commonplace, the number of house repossessions rises, and the number of people able to repay their loans decreases. During a depression, the commercial, industrial, and financial sectors all experience difficulties, including a precipitous drop in prices, a tightening of credit, a slowing of output, a drying up of investment, and an increase in bankruptcies. The United States, the European Union (EU), and Japan all entered recession with the demise of Lehman Brothers and other Wall Street titans. There were widespread foreclosures in the US home market because banks were making unsafe loans to people who couldn't afford to pay them back. The real sector, or "Main Street," has been the primary medium of crisis propagation. The United States was hit by a slow-moving recession as a result of this crisis, which only made matters worse. Thus, it appeared that the United States was purchasing less of the world's most vital commodities.