What exactly keeps your employment rate up?

[Ndaku]

As the title brings forth the topic, what are some factors that keep your employment up? A few days ago I had rate of about 88%, and then when I legalized a small-scale capitalist policy, it went from 88% down to 32%. Why? There are nations such as this one who have an imploded economy yet they have a near perfect employment rate. I hypothesized that my tax rate could affect it, but then I came across this nation and my hypothesis was proven false.

[Altito Asmoro]

As the title brings forth the topic, what are some factors that keep your employment up? A few days ago I had rate of about 88%, and then when I legalized a small-scale capitalist policy, it went from 88% down to 32%. Why? There are nations such as this one who have an imploded economy yet they have a near perfect employment rate. I hypothesized that my tax rate could affect it, but then I came across this nation and my hypothesis was proven false.

Well...isn't capitalism the sort of economy model to obtain maximum profit with minimum production cost?

Maybe even though it is small, it affected employment with some people losing their jobs to machines? I don't know exactly why. Just a hypothesis.

[Ndaku]

As the title brings forth the topic, what are some factors that keep your employment up? A few days ago I had rate of about 88%, and then when I legalized a small-scale capitalist policy, it went from 88% down to 32%. Why? There are nations such as this one who have an imploded economy yet they have a near perfect employment rate. I hypothesized that my tax rate could affect it, but then I came across this nation and my hypothesis was proven false.

Well...isn't capitalism the sort of economy model to obtain maximum profit with minimum production cost?

Maybe even though it is small, it affected employment with some people losing their jobs to machines? I don't know exactly why. Just a hypothesis.

It's supposed to be, but there are quite a number of really socialist nations who have a really high employment rate, like the second nation I listed in the OP.

[Cresenthia]

Well...isn't capitalism the sort of economy model to obtain maximum profit with minimum production cost?

Maybe even though it is small, it affected employment with some people losing their jobs to machines? I don't know exactly why. Just a hypothesis.

It's supposed to be, but there are quite a number of really socialist nations who have a really high employment rate, like the second nation I listed in the OP.

A socialist government finds that it's in its best interest to keep most people employed even if they aren't particularly competent. In a capitalist society, if you don't have marketable you don't have a job. This is what I think might have happened to you.

[Altito Asmoro]

Well...isn't capitalism the sort of economy model to obtain maximum profit with minimum production cost?

Maybe even though it is small, it affected employment with some people losing their jobs to machines? I don't know exactly why. Just a hypothesis.

It's supposed to be, but there are quite a number of really socialist nations who have a really high employment rate, like the second nation I listed in the OP.

Socialist government tends to employ more workforce. Capitalist system maximizes the profit and sees that more production cost is not something efficient.

Can be summed up with this post :

It's supposed to be, but there are quite a number of really socialist nations who have a really high employment rate, like the second nation I listed in the OP.

A socialist government finds that it's in its best interest to keep most people employed even if they aren't particularly competent. In a capitalist society, if you don't have marketable you don't have a job. This is what I think might have happened to you.

[Ndaku]

So based on your knowledge, what kind of choices should I make with issues that pertain to stimulating or depressing employment rate? Because I've answered issues that allowed more government funds to my automotive and arms manufacturing industries, and even education which stimulated a lot of other industries. Yet, the employment rate experiences little to no change. Whereas issues like legalizing small-scale capitalism damages the rate significantly. If it's a part of the exaggerated property of this game then I could understand but...still.

[Pencil Sharpeners 2]

If you view your Economic freedom and Employment graphs side by side, that basically answers your question. (Note, nations with private enterprise legalised have a positive economic freedom, nation's where private enterprise is outlawed have negative economic freedom, which is what's causing the big jumps in your graph)
Essentially, as others have mentioned, in a nation without private enterprise, the government is in charge of employing people, and it's in the government's interest that people are employed, even if they aren't that good at the job. In a private business, however, the boss is unlikely to care whether someone is unemployed or not, so will only employ people if it will help the company make a profit.
Your nation has high poor incomes (which implies a high minimum wage), and a high tax rate, which will discourage private companies from employing people, since it might decrease their profit. You also have high welfare, which lowers people's incentive to work, so you have a low employment rate.
If you want high employment there are 2 options for you: firstly, you could destroy your welfare department, the minimum wage, and any other worker's rights your nation may have, or you can just outlaw private enterprise again (which is probably the better option for your nation).

[Ndaku]

Alright, thanks guys.