If there is surplus labour and deficit production, the effect of depression is more acute. Bihar, Andhra Pradesh, especially the Telengana region, and Orissa are surplus labour areas, so during a depression these areas could face indiscriminate closure of business houses and lay-offs. When wages fall, the people in surplus labour areas who used to go to deficit labour areas for employment will be subjected to more hardships. This will aggravate the unemployment problem in surplus labour areas. In such situations, restricting the transfer of food among different socio-economic units could lead to an acute scarcity of food in the deficit production areas, and therefore a cordon system should not be introduced. Countries and regions with surplus production and deficit labour usually suffer less hardships during depression.