The spending power of the unemployed is reduced when there is job insecurity and increase in taxes. An increase in the unemployment rate has a significant impact on economic factors such as healthcare costs, a person's income, quality healthcare and the level of attrition. Therefore, the unemployment rate indicator should be kept as low as possible. The government of any country tries to keep the inflation rate low but positive. The reason for this is that a continuous increase in the inflation rate has a detrimental effect. The risk of a higher level of inflation is that there will be a regressive effect on the lowest income families in society. This increases the price of food and household services. When wages are cut, an increase in inflation would cause a decrease in the worker's real income. When there is high inflation, there may be an increase in the interest rate for businesses and people applying for loans and mortgages as the financial market helps protect against rising prices and increases financing costs. Pressure also on the government