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the claim
High inflation leads to higher unemployment.
the verdict
CONTESTED PARTIAL
Recorded sources
2 sources for · 5 against
Is it true that high inflation leads to higher unemployment?
Partly. Evidence is mixed and only partial: several studies report an inflation-unemployment trade-off in which higher inflation accompanies lower unemployment, while one theoretical paper argues rising inflation leads to higher unemployment via interest rates, and another source states unemployment raises inflation.
Verdict: CONTESTED PARTIAL · 2 sources for, 5 against · Last checked
Evidence for · 2
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Pure Theories of Policy Mix: Nordhaus's Destructive Game and the Case of High Inflation. (2024). hal.science. https://hal.science/hal-04634043v1
Evidence against · 5
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The impact of growth on unemployment in a low vs. a high inflation environment. (2018). doi.org. https://doi.org/10.1016/j.red.2017.07.005
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More for · 1
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G., G. & M., S. (2025). GLOBAL UNEMPLOYMENT TRENDS AND THE ECONOMIC AND LEGAL CHALLENGES OF GEORGIA'S LABOR MARKET. zenodo.org. https://doi.org/10.5281/zenodo.17012919
More against · 4
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Growth and unemployment in the presence of trend inflation. (2014). hdl.handle.net. http://hdl.handle.net/10419/104973
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C., H. C. & Others, A. (1971). The Unemployment-Inflation Dilemma: A Manpower Solution.. eric.ed.gov. https://eric.ed.gov/?id=ED074260
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Inflation and unemployment trade-off: A re-examination of the Phillips curve and its stability in Nigeria. (2019). hdl.handle.net. https://hdl.handle.net/10419/297466
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Pratysto, T., Destiartono, M. E., & Kafabih, A. (2026). Does tertiary education alleviate unemployment in middle-income countries? Insights from a dynamic panel data. doi.org. https://doi.org/10.18196/jesp.v27i1.29792
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