Question

True or False?

Wages must be kept low in order to keep the rate of unemployment low.

Explain your answer.

Answer 1

Ans. False

Low wages actually leads to raise in unemployment because labors or workers are subjected to low salary & incentives and employer more emphasis on automation and they also outsource the work to minimize cost which is before done by low-wage workers.

Example: Now a days in manufacturing sector companies more emphasis on technology because an task perform by low wage labor is comparatively costlier than performed by an CNC or any automation technology and this technology performed work takes less time and subject to higher accuracy comparatively.