Political decisions made on the macroeconomic level to address rising unemployment -- stimulus packages, unemployment benefit extensions, industry-targeted bailouts -- have both intended and unintended consequences. Expending public funds in efforts to stimulate the economy and, in turn, create jobs, may or may not produce short-term results, but fallout often accompanies such decisions. The national deficit, as well as the debt, rises, and GDP falls, creating nervousness among investors and an unwillingness to throw good money after bad. Taxes rise in response to -- you guessed it -- decreasing tax revenues and increased government spending.
Moreover, the effects linger for decades. 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, Effects of unemplyment rates increase significantly; in other circumstances, there seems to be no effect.
Individual Consequences of Unemployment Writing in The New York Times on "The Enduring Consequences of Unemployment," economist Binyamin Applebaum explains that the consequences for an unemployed individual are both grave and long-lasting. For example, workers who became unemployed in the severe early s recession were making about 20 percent less than average 20 years later.
It's also bad for your health. A Pennsylvania study found that unemployed workers died more than a year earlier than average.
Long-lasting consequences extend to the families of unemployed workers, as well. A Canadian study Applebaum cited found that the sons of unemployed workers made about 9 percent less than the sons of employed workers with similar skills.
The longer the unemployment goes on, the more severe the health consequences, with increased depression and other health issues worsening over time. In addition to the obvious loss of income, unemployed workers were found to have lost friends and self-respect.
Also, the longer the unemployment goes on it becomes more difficult for the worker to find employment again -- both because employers are wary of the long-time unemployed and also because over time, unemployed workers lose job skills.
The skills loss is not limited to jobs: A Swedish study found that reading comprehension skills for workers unemployed for one year dropped by 5 percent. Social Consequences of Unemployment One consequence of unemployment frequently commented upon is a purported increase in crime.
However, a large-scale study of the issue came to mixed conclusions about the connection.
However, the study did confirm that persons who are unemployed for "socially unacceptable reasons" and who are also not seeking employment are "significantly more likely" to commit robbery or burglary.
Robbery crimes are committed against a person, and often by violent means; burglary crimes are property crimes.
The study also found, however, that unemployed persons seeking work are neither more nor less likely to rob or burgle than are the fully employed. Somewhat counter intuitively, however, the study also found that underemployed individuals are "significantly less" likely to commit burglary, but are about as likely to commit robbery as individuals in the general population.
The correlation between joblessness and property crime was greatest among the young. The study found that joblessness increased the likelihood of burglary for persons aged 18 to 29 four times more so than for unemployed persons 30 and older.
Effects of Unemployment on the Economy Some of the effects of unemployment are immediate and obvious.Lampman (), in his research on unemployment and its causes found that a good research on the effect of unemployment, and an intelligent approach to public policy aimed at preventing or reducing it and would demand some understanding of the causes of unemployment in a given society.
After unemployment, symptoms of somatization, depression, and anxiety were significantly greater in the unemployed than employed. Large standard deviations on self-esteem scores in the unemployed group suggested that some men coped better than others with job-loss stress.
Unemployment, particularly sustained unemployment, has both obvious and subtle effects on individuals, communities, families, businesses and political entities. The impact is felt at the personal, community and even national levels, with individuals and families suffering the brunt of emotional, psychological, spiritual and physical effects.
Unemployment in an economy has many impacts on the government, firms and, of course, the unemployed people themselves. On the government: Fewer tax revenues – Because fewer people are working, there will be fewer people earning enough income to pay tax. Jun 29, · Unemployment affects the unemployed individual's income, health and mortality and the effects linger for decades.
A 1 percent increase in unemployment decreases GDP by 2 percent. Psychological and health data after unemployment were compared between the two groups by multivariate analysis of variance and covariance. After unemployment, symptoms of somatization, depression, and anxiety were significantly greater in the unemployed than employed.