Unemployment means being out of job or a situation where the individual is willing to work but has none.
This article brings and discusses the main issues/effects of the unemployment on our society and economy.
How does unemployment affect the economy?
Some of the well-known effects of unemployment on the economy are:
Unemployment financial costs
The government and the nation suffer. In many countries the government has to pay the unemployed some benefits. The greater the number of the unemployed or the longer they are without work the more money the government has to shell out.
Therefore, the nation not only has to deal with the lost income and decreased production but also with additional cost.
The spending power of an unemployed person and his/her family decreases drastically and they would rather save than spend their money, which in turn affects the economy adversely.
Reduced spending power of the employed
Increased taxes and the insecurity about their own work may affect the spending power of the working people as well and they too may start to spend less than before thus affecting the economy and also the society in a negative manner.
With the increase rates of unemployment other economy factors are significantly affected, such as: the income per person, health costs, quality of health-care, standard of leaving and poverty.
All these affect not just the economy but the entire systems and the society in general. Here are some aspects of the impact of unemployment on our society:
The effect of unemployment on our society
Unemployment affects not just the person himself but also his/her family and in the long run the society where he lives.
Unemployment brings with it despair, unhappiness and anguish. It forces people to live their lives in a way they do not wish to – The life expectancy is negatively affected.
Life expectancy is the ease by which people living in a time/place are able to satisfy their needs/wants. Here are the main aspects:
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