@Deathgoroth:
I am glad that you see space for some compromise and improvement upon my ideas, rather than immediately rejecting them for being different from your own ideas. It looks like we are all set to have some logical and reasonable conversation!
Interestingly, I did consider the fact that unemployment, as I have defined according to real economic theory, would merely be a statistic in the game, with no direct influence on any game factors. However, I also considered what the effect of the figure of unemployment has on the economy and society of the real world, and the answer is fairly obvious--the direct material effect is none, but the psychological effect is dramatic. As much as Civ is only a game, I want it to be a game with logic, where things can be figured out because they make sense, and therefore the logical next step upon realizing this aspect of the effects of unemployment is to consider how it might affect game factors in Civ that are psychologically based. The most obvious would be the happiness of the population, and for more modern times, the "confidence" of investors in the stock market.
In other words, I propose that the unemployment rate indeed be part of the equation for psychological factors in the game, particularly citizen happiness. This could easily apply throughout history, for even when people did not have the media and information of modern times, they could still see if half their villages were idle and starving. A more modern phenomenon would be the "investor confidence" factor that may affect the effectiveness of stock markets. Unemployment, among other things, would be appropriate as direct "parts of the equation" in these cases. Thus, the unemployment rate actually would have a tangible effect in terms of gameplay.
However, I would like to, if possible, avoid "random" relationships that bear little connection to logic or reality. For example, the unemployment rate should not lower production, because generally the process is the other way--lowered production results in unemployment. With your previous post, it appears that you suggest using the unemployment figure as the interest rate of the central (national) bank. While I do not see unemployment as being directly proportional to prevailing interest rates, and therefore would hesitate to implement this specific equation, I DO agree that unemployment should be part of the central bank interest rate equation, since the rate is essentially a psychological/judgment/evaluation-type figure. In short, someone makes it up, and that person could feel that unemployment is having an effect, and therefore the interest rate should go up/down.
Thus, I believe, I do keep most of your ideas, just not the specific implementations. And, as is probably true, I have made the equations more complex in the process. As far as I am concerned, though, this complexity is desirable, not because the real world is also complex, but because complexity allows for more possibilities. I honestly do not believe that the fundamental concepts are difficult to grasp; only the specifics might be tricky. This position is perfect--beginners can start without too much trouble, but veterans can continue to explore new aspects and new strategies to improve their game (as well as their understanding of economics

). In other words, I would like Civ to be easy to learn, but difficult to master.
@Aussie_Lurker:
I do like the general idea in your suggestions regarding a "welfare state." In this case, the only non-psychological situation I can think of, including the unemployment rate as a direct part of the equation would be very reasonable.