What are the personal, economic and social consequences of
Let us discuss certain concepts related to unemployment:
Labor force: In an economy, labor force refers to the part of the working age population (aged 15-69) that is willing and able to work. It is the sum of employed and unemployed people.
Employed: Those people who belong to the labor force and are working belong to the employed category.
Unemployed: This includes the people who are willing and able to work but do not possess job.
Unemployment: Unemployment refers to the situation where people in the working age population (aged 16-59) are willing and able to work but cannot find work.
Unemployment rate: It is the number of people unemployed as a percentage of labor force. It is calculated using the formula below:
Unemployment rate is a misery for an economy. There are several personal, social and economic costs associated with persistent, long-term and high unemployment rate. Some of them are listed below:
Personal consequences of unemployment:
- Financial Stress
- Homelessness
- Social isolation
- Issues and problems with partners
- Mental and psychological stress
- Alienation of teenagers due to complexes
- Family breakdown
- Indebtedness
- Generations of poverty due to poverty trap
- Behavioral issues with children
- Social stigma related to economic status
- Continuous decline in living standards
- Health issues due to lack of healthcare affordability
- Decreased confidence levels, etc.
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