A Level History - America - Practice Exam

What percentage of the workforce was unemployed as a result of the Wall Street Crash?

1. 10%

2. 15%

3. 20%

4. 25%

The correct answer is: 25%

The Great Depression, which followed the Wall Street Crash of 1929, had a devastating impact on the American economy and labor market. By 1933, the peak of the Depression, unemployment rose dramatically, reaching approximately 25% of the workforce. This figure reflects the widespread economic instability and the significant number of businesses that failed, leading to mass layoffs and a drastic reduction in consumer spending. This high level of unemployment illustrated the extent of the economic crisis, exacerbated by factors such as bank failures, reduced international trade, and a severe decline in industrial output. The social implications were profound, as millions of families faced poverty and insecurity, and the scale of unemployment was unparalleled in American history up until that time. This 25% figure serves as a stark reminder of the economic turmoil that followed the crash and shaped the subsequent policies of the New Deal aimed at recovery and reform.