The Effects of Unemployment

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The Effects of Unemployment Roderick C. LaGrone COM 150 January 28, 2011 Holly McCusker The Effects of Unemployment Over the past ten years there has been a great shift in society’s employment system. Corporate America has taken major cutbacks in the working labor department that has left many citizens unemployed and destitute. Anger and concern over layoffs, wage unproductivity, declining benefits, and the movement of jobs overseas has left citizens with harsh and undesirable views of the actions and motivations of Corporate America. With the unemployment rate on a downward slope, American citizens have become distressed which has resulted in emotional, social, and, economic hardships. Even though the unemployment rate in the …show more content…

Unemployment causes a great deal of social and economic problems; it reduces national income, and decreased living standards. When individuals lose their source of income and have issues finding another job that meets their living standards, they tend to accept jobs that are below their standards and will usually work for as low as minimum wage to make ends meet. Because of this employers tend to find laborer more easily and are less likely to increase wages to attract workers. When employers lower their wages American society is once again affected by lowering consumer goods and capital. The increase in unemployment not only affects individuals, their families, and communities, but unemployment also causes a loss of human capital. When citizens are laid-off they cause a loss in human capital because they don't contribute skills and experience to the workforce. Securing a job is more difficult the longer a person is out of work because they are less preferred as new workers. The unemployed experience a loss of self-esteem and dignity which reduces their motivation leading to long-term unemployment and dependence on welfare for income support. Thus, unemployment results in a decline in labor market skills because those who are tirelessly unemployed lose valued skills. Job loss reduces the production of consumer and capital goods and decrease living standards and

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