Unemployment means being out of job or a situation where the individual is wiling to work but has none this article brings and discusses the main issues/effects of the unemployment on our society and economy. Unemployment is also a dangerous state for the us economy over 70% of what the us economy produces goes to personal consumption and unemployed workers even those getting government support cannot spend at prior levels. Read this article to learn about bad effects of unemployment on economic growth unemployment is a big problem which effects the economic growth of the country.
The effects of unemployment on the economy are equally severe a 1-percent increase in unemployment reduces the gdp by 2 percent the criminal consequences of unemployment are mixed in some circumstances, property-crime rates increase significantly in other circumstances, there seems to be no effect.
However, unemployment causes a sort of ripple effect across the economy with one person losing his job, there is one less person that will pay state and federal income taxes, one less person that will pay additional sales tax revenue as a laid off worker will instantly cut back on their non-necessary spending due to less disposable income and worry about future financial security. Unemployment directly affects a country's economic growth if a country has high unemployment rate than definitely there would be no production and without production a country's economy couldn't survive. 1 economic effects of the unemployment insurance benefit business review shigeru fujita july 30, 2010 the views expressed here are those of the author and do not necessarily represent the views of.
Reduced economic development to curb the negative effects of unemployment, some governments initiate unemployment benefit programs for its temporarily displaced citizens such programs are costly to taxpayers and may lead to government borrowing or reallocation of other developmental funds. Effects of unemployment to the economy include recession, high government expenditure and wasted resources high levels of unemployment not only affect unemployed people, but also the local and regional economies.