Somebody explain unemployment in SRU

General discussion related to the game goes here.

Moderators: Balthagor, Legend, Moderators

Post Reply
Message
Author
irfanahmed1979
Major
Posts: 157
Joined: Dec 29 2013
Human: Yes
Location: Lahore, Pakistan

Somebody explain unemployment in SRU

#1 Post by irfanahmed1979 » Jul 28 2018

1. How is it determined?
2. What can one do to keep it from reaching 3% or below when the warning messages start appearing?
3. Does taxation have any affect on it?
4. Speaking of taxation, does a low corporate tax really trigger a lot of corporate activity as claimed in the game manual? If so, how does one notice its result in the game?

My own personal observations are: Too much research, too quickly reduces unemployment very quickly. On the other hand if I close down 300 coal power plants and around 200 petrol power plants at the start, it doesn't affect my unemployment rate. Also at the start of the game the unemployment may be high but can come down within a year or two due to heavy construction and research.

way2co0l
Brigadier Gen.
Posts: 687
Joined: Nov 29 2010
Human: Yes

Re: Somebody explain unemployment in SRU

#2 Post by way2co0l » Jul 28 2018

irfanahmed1979 wrote:
Jul 28 2018
1. How is it determined?
2. What can one do to keep it from reaching 3% or below when the warning messages start appearing?
3. Does taxation have any affect on it?
4. Speaking of taxation, does a low corporate tax really trigger a lot of corporate activity as claimed in the game manual? If so, how does one notice its result in the game?

My own personal observations are: Too much research, too quickly reduces unemployment very quickly. On the other hand if I close down 300 coal power plants and around 200 petrol power plants at the start, it doesn't affect my unemployment rate. Also at the start of the game the unemployment may be high but can come down within a year or two due to heavy construction and research.
1: Unemployment is basically a measurement of numerous different areas and is directly tied to inflation and loosely tied to GDP growth. Almost anything that has a slider where you inject money into the economy will also create jobs and lower unemployment, and most things that take money out of the economy into the government treasury will slow job growth down.
2: Be mindful of how you're injecting money into the economy. Research spending as you've pointed out, but facility construction, military spending, unit production, resource production sliders, social spending, ect. One thing many players don't realize is that your social spending has a hidden employment factor to it. When you increase infrastructure spending to max, you are also employing a large number of people to do these jobs. When you increase health care, you are also creating jobs. If you create more jobs than your population can sustain then unemployment will drop so if you want to control it, you pretty much need to reduce spending somewhere. Either in your research, military spending, facility construction, social spending, or resource production. A point to keep in mind with resource production will be listed further below.
3:Taxation definitely does have an effect on it as it cools the economy down. Higher domestic prices on goods has a similar effect. I do find that it doesn't tend to be as strong as social spending is, at least early on, so it can be difficult to spend on everything you want, even with maxed out taxes, without dealing with overemployment anyway. You're still going to need to make sacrifices in spending.
4: Corporate taxes definitely do have an effect on jobs created in the background, as do business taxes. Lowering them tends to create jobs in the background more quickly, and raising them tends to slow job creation down. I personally tend to keep my corporate taxes as my second highest (behind taxes on the rich) with business taxes 3rd and low taxes as my lowest of the 4. This is done partially due to the effect it has on DAR when you have unbalanced taxes while still getting the effect I want.

Now, to the issue of resource production. It's important to realize that it doesn't matter if you have 100 coal mines or 1000, outside of the maintenance costs of them. What really matters is how many of them you're actually using. If you have 1000 coal mines but you have your setting set to produce to demand rather than capacity and are actually using less than 100, then shutting down those extra 900 facilities won't actually effect your employment. All it will do is reduce your maintenance costs (which is still a good thing). You are producing at demand so not employing as many people as you could, so no one is actually in those other mines and shutting them down has no effect on employment for that reason. However, if you shut down enough mines so that producing to demand is equivalent to producing at capacity, then shutting down further plants WILL have an effect on your employment. What matters is how much of your capacity you are using, and when you are producing at full capacity and then start reducing that capacity, you are removing jobs in the process. A good way to help with the balancing is to reduce a lot of your resource production so that you're only producing at demand for most goods, with a little extra for critical resources or trade resources, and maybe even stop producing the ones you can trade for cheaply altogether. The less you produce, the fewer people you employ, so reduce production so you're not producing more than you actually need for some reason. Stockpiling is nice, but it comes at a cost in manpower. If that's worth it to you then great, otherwise it might be worth reconsidering.

User avatar
Leafgreen
Colonel
Posts: 355
Joined: Apr 06 2006
Location: Emerald City
Contact:

Re: Somebody explain unemployment in SRU

#3 Post by Leafgreen » Jul 28 2018

Very very nice and simple description of employment vs spending. Bookmarked.
"That's O'neill, with two l's"
(Holds up 3 fingers)

irfanahmed1979
Major
Posts: 157
Joined: Dec 29 2013
Human: Yes
Location: Lahore, Pakistan

Re: Somebody explain unemployment in SRU

#4 Post by irfanahmed1979 » Jul 29 2018

way2co0l, that's the best explanation I've had so far! Thankyou.

PanzerHue
Sergeant
Posts: 13
Joined: Nov 08 2008

Re: Somebody explain unemployment in SRU

#5 Post by PanzerHue » Aug 10 2019

"1: Unemployment is basically a measurement of numerous different areas and is directly tied to inflation and loosely tied to GDP growth. Almost anything that has a slider where you inject money into the economy will also create jobs and lower unemployment, and most things that take money out of the economy into the government treasury will slow job growth down.
2: Be mindful of how you're injecting money into the economy. Research spending as you've pointed out, but facility construction, military spending, unit production, resource production sliders, social spending, ect. One thing many players don't realize is that your social spending has a hidden employment factor to it. When you increase infrastructure spending to max, you are also employing a large number of people to do these jobs. When you increase health care, you are also creating jobs. If you create more jobs than your population can sustain then unemployment will drop so if you want to control it, you pretty much need to reduce spending somewhere. Either in your research, military spending, facility construction, social spending, or resource production. A point to keep in mind with resource production will be listed further below.
3:Taxation definitely does have an effect on it as it cools the economy down. Higher domestic prices on goods has a similar effect. I do find that it doesn't tend to be as strong as social spending is, at least early on, so it can be difficult to spend on everything you want, even with maxed out taxes, without dealing with overemployment anyway. You're still going to need to make sacrifices in spending.
4: Corporate taxes definitely do have an effect on jobs created in the background, as do business taxes. Lowering them tends to create jobs in the background more quickly, and raising them tends to slow job creation down. I personally tend to keep my corporate taxes as my second highest (behind taxes on the rich) with business taxes 3rd and low taxes as my lowest of the 4. This is done partially due to the effect it has on DAR when you have unbalanced taxes while still getting the effect I want."


GREAT way to explain the mechanics!

I have tried to test out how debt affect unemployment (according to the above): loan payment and interests take money out of the economy and into the government treasury.
In the "Finance" tab under "expenses"/"Treasury" theres a post for "Loan payments" and "Interests".

But, I find it hard to notice any affect on GDP/Inflation and Unemployment by taking up debt.

Any thoughts on this?

Post Reply

Return to “General Discussion - SRUltimate”