Explain unemployment and inflation pls

[Spookyashell]

I know how it works IRL but, how does the game calculate it?

In 7.3.1 I have such problems with low unemployment and high inflation. I restarted to try combat it from the start. Playing USA. All I built was 3 research centers and 5 oil fields. Plus a supply depot by a airport close to Washington DC.
I increased domestic prices to lower demand for goods so I didn't have to build more powerplants, agriculture, water and such. And buying all the coal and, uranium and metal I can get my hands on. and increase tax from 47% to 75%. I'm not very popular among the sheep, err I mean people

Still 1 year in, unemployment is already down to 2.8% (from 5% at start of game) and inflation a staggering 14.2% and rising. Where do these people find jobs?

I got a large chunk of North Korea increasing population by 3 million. Birth 4.2M vs 2.2M deaths. But all these people find jobs even though I have barely built anything. I have signed free flow of workforce deals with all western countries with lower GDP than me and people are immigrating, but I have no chance to keep up with the demand for workers.

I have however increased social spendings quite a bit. Guess perhaps that created lots of new jobs. But I have done everything in my power to limit purchacing power, but inflation skyrocket anyway.

Could use a helping hand here.

[Aragos]

My bet is you are losing population due to high taxes, product costs and low social programs. Literally, you have increased employment due to workers fleeing your country.

[Spookyashell]

My bet is you are losing population due to high taxes, product costs and low social programs. Literally, you have increased employment due to workers fleeing your country.

No, Immigration 489k annually, emmigration 170k. So more people are immigrating than emmigrating. pluss I have 2.1M more births than deaths each year. So we become more and more people. Social spendings are high. I think thats where they keep finding work.
I see inflation going alittlebit down when I try to cut in social spendings, but not much. Unemployment does not go up when I cut in SS. So I'm not sure if social spendings use manpower.

Also, forgot to mention in OP that I have turned down production. Some are 100% of demand, some I have at 60% of demand and I buy what I don't produce. So I have done everything in my power to prevent this.

I guess I shouldn't care maybe, coz I have surplus on the budget. and a positive trade balance. I just really hate having 14% inflation, in the real world such high inflation would be a problem. Might not be in SRCW.