What economic condition typically leads to low unemployment?

A growing economy typically leads to low unemployment because such an economic environment generally sees increased consumer demand, higher levels of investment from businesses, and expansion in various sectors. When the economy is growing, businesses are more likely to hire additional workers to meet the demand for goods and services, resulting in more job opportunities.

As businesses expand, they require a larger workforce, which helps to reduce the unemployment rate. This economic growth can stem from factors like increased consumer spending, technological advancements, or favorable government policies that stimulate business activity.

In contrast, a recessive economy would lead to higher unemployment due to decreased demand and business contraction, while an unstable economy often results in job losses due to uncertainty and reduced investment. A stable economy may maintain low unemployment, but it does not inherently promote it in the same proactive manner that a growing economy does.