Essay On Economic Effects Of Unemployment

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The economic well being of a nation varies on the speed of economic growth. Employment, unemployment, industrialization and many other factors are determinants of a country’s economic development. Unemployment has an adverse impact on the U.S. economy because it is a key indicator for economic growth. Unemployment is commonly defined as the percentage of people eager to be employed, but are currently not. It is a grave issue for any economy because it generates adverse affects not only on those that are unemployed, who suffer through the process of finding a new job, but also those who are currently employed because they feel like their jobs are not secure. Unemployment potentially reduces overall growth of the economy because it causes less depletion of goods and services. When…show more content…
Crime rates will increase because people will become desperate and turn to desperate measures. Areas of increased unemployment rates amongst younger individuals are especially known to have more criminal activity, which can lead to the younger generation having difficulties integrating into society (Economic costs of unemployment). Financial obstacles bring burdens to families because they cannot make ends meet. Poor standard of living is due to lack of financial stability, which leads to family conflict and stress. Human capital is at a loss when unemployment rates are high because individuals can lose their skills in a trained area due to not being able to practice and use that skill in a job everyday. Another harmful factor to social effects is mental health problems caused by lack of employment. Individuals who face unemployment are prone to become depressed and have high anxiety levels. They are also known to have noticeably higher health problems due to their lack of
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