Historical data support that long-term unemployment increases with higher costs of hiring and firing employees.

Question

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Studies have shown that when costs associated with hiring and firing employees are high, companies become more cautious about making new hires and are more likely to terminate employees, leading to an increase in long-term unemployment. This has been observed in various countries with high levels of employment protection laws and strict labor regulations.

Historical Data Support That Long-Term Unemployment Increases with Higher Costs