Causes And Effects Of Unemployment Essay

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Everyone in this world needs to have job or money in order to survive. In the current situation, there are still tons of people all around the globe, who does not have a job and money. Unemployment has always been a major problem for every country. Unemployment refers to a person who is available for work, yet he or she does not have any opportunities. This means he or she cannot not earn money for a certain amount of time, which directly affects his or her family. When we think of unemployment, we think of a person without a job or “jobless”. However, we do not consider what were the causes of that situation? Or what was the effect? It is crucial to understand the cause and effect of unemployment because it can happen to almost anyone in…show more content…
The most tangible effect of unemployment is the loss of income, which means that an individual or family cannot afford the things that they have been using earlier. People cannot earn money to meet their financial obligations, which increases mental stress, anguish, and depression in the life of that individual and family. For people with average income, unemployment is like the end of the world because without any income they will not be able to pay rent, utilities, and other daily life requirements. The shortage of money can also leads to poverty, underemployment, and psychological anxiety. Sometimes, this results in increase of suicide cases, homelessness, and mental health problems. Additionally, it can give rise to crime, robbery, gambling, prostitution, and bribery. When a single person loses a job, there is one less person who will pay state and federal income taxes, which means there is one more person who will rely on government funds. If the rate of unemployment continues to rise, then the state will increase the taxes to recover the loss of tax revenue. As a result, there is less money available to spend on the economy of the country, which again leads to loss of jobs. Thus, it becomes a continuous cycle and it can extremely havoc economy. Unemployment for anyone is extremely unpleasant situation. The situation where someone does not

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