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Relationship Between Crime Level and Unemployment.

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Relationship between crime level and unemployment.

This paper will focus on the relationship between unemployment and crime and their ability to reflect the labor market crime correlation.

A balanced economic growth of the economy is the ideal way of development when all utilities work in order to provide healthy business growth. One of the disbalance factors of the market economy is unemployment. In case there are errors it creates conflict situations in the economy such as unprecedented actions, random resource movement all this decrease economic efficiency and as a result business activity. Increased economic disproportions create economic instability that decline production and therefore unemployment rises. It damages living standards of unemployed and working people, as oversupply of labour causes wage reduction. It causes a danger for social conflicts that damages even more incentive for business activity and causes capital outflow. Unemployment can take place in the healthy economic developments, so called natural unemployment can be within 4-5%. In the modern economic environment employment can be effective only when unemployment is close to the natural level which can never be equal to zero. Labour is a product and the price of the labour on the market is under the influence of supply and demand.

The relationship between economic conditions, property crime and other types of crime like violence is complicated. The existence of positive correlation between low quality of life, which is a sequence of the economic situation, and committing robberies or burglaries is almost obvious, while the existence of such relationship with violent crime is less straightforward. For instance, a person’s incentive to commit murder or rape depends not only on his welfare or education but also significantly depends on some sociological circumstances and psychological

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