Future Business Leaders of America (FBLA) Personal Finance Practice Test 2025 - Free Personal Finance Practice Questions and Study Guide

When unemployment rates are high, job security becomes a significant concern for employees. High unemployment usually indicates a tougher job market, where fewer companies are hiring and existing jobs may be at risk due to layoffs or company downsizing. Employees may worry about their positions being eliminated, as organizations often look to reduce costs during economic downturns, leading to increased anxiety about having stable employment.

Job security is vital for employees to feel safe in their roles, and high unemployment dampens that sense of security. The possibility of a layoff looms larger when other people are also struggling to find work, making employees more cautious about their current positions and future employment prospects.

In contrast, the other options do not align with the realities of a high unemployment rate. Less job competition and increased job openings suggest an easier hiring environment, while higher salaries are usually not a direct result of high unemployment, as wage growth tends to slow when there is a surplus of labor.