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Effects of unemployment on the family
Effects of unemployment
Social problems caused by unemployment
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enormous drop in their household income. As unemployment rates increases, income, health care costs, standard of living, and poverty are considerably affected (Job-Interview-Site.com, 2014). An economic uncertainty connected with unemployment varies from income and education levels. Unsurprisingly, uneducated African-Americans and Hispanics are more likely to become affected most by these economic insecurities. Unemployment has a more devastating effect on families with children due to all the responsivities that have for example: making house payments, buying food, transportation, health care, and child care. There is Research that has been done that shows how unemployment not only affects the adults, but their children as well. Children …show more content…
Numerous of unemployed individuals encounter problems with their health; chaos, pain, depression and, anxiety. As Christians, our Bible is the manual; we need to follow in every area of our life. Jesus told us in this life we would have troubles, but he has overcome them. This scripture lets us know that we to can overcome the issues of this life if, we follow his word. The Bible provides us with solutions and gives us comfort in dealing with all of life’s stresses. “Finally, brethren, whatever things are true, whatever things are noble, whatever things are just, whatever things are pure, whatever things are lovely, whatever things are of good report, if there is any virtue and if there is anything praiseworthy—meditate on these things,” Philippians 4:8 NLT. The financial crisis of 2008 created record levels of unemployment, as 8.3 million jobs were lost. By 2009, the unemployment rate had risen to 10.1%. Housing, which usually drives the expansion phase of the business cycle, was suppressed by a wave of foreclosures. As a result, nearly half the unemployed were out of a job for six months or more. This created structural unemployment, as their skills and experience started to become …show more content…
The effect of the unemployment on our society not only affects the person themselves, but it affects the society where an individual lives. Unemployment comes with uncertainty, doubt, unhappiness and anguish. People are suddenly force to live their lives in a way they’re not accustomed to due to the loss of income.
Finally, we see that the cost of unemployment and the effects on the economy are very detrimental to society as a whole. Unemployment affects every area of your life either directly or indirectly. Once an individual becomes unemployed it cause a down ward affect not only to the individual, but our economy as well. The loss of jobs causes the economy to go down. Once this happen people stop spending and buying, which in-turn slows down selling and buying of goods that keeps the economy for growing. Once the economy stops growing than we are in trouble for our economy and a possible repeat of the recessions, that has plague our country from the past. When consumer demand for goods and services drops, business revenues decline, and eventually companies have to lay off workers to maintain profit margins. Often there isn 't enough production to keep the workers busy. Over a period of time, the economy experiences many ups and downs this causes
These detrimental effects affect kids life and sets some up to fail. Poverty creates many negative effects and should be addressed more. Some preventive methods include increasing employment and making work pay more for adults with children, Ensuring children’s basic needs are met, boosting housing subsidies, and investing in preschool and child
Unemployment can affect families drastically from suicidal tendencies, marriage breakdowns, alcohol and drug abuse and even family violence (Broman, Hamilton & Hoffman, 1996; House of Representatives Standing Committee on Employment, Education and Workplace Relations, 2000). For many individuals work provides them with a place to social network and it gives them self-esteem and the loss of both when unemployment hits, creates isolation which happens quickly. However, unemployment does not just affect the individual famil...
What at first seemed to be an economic slump turned into a brutal crisis, and all eyes looked to the Government and Federal Reserve to help the economy. With the large amount of debt the economy faced the Federal Reserve stepped in and bailed out the banks in an attempt to smooth over the financial struggles of the economy. The banks that survived took precautionary measures, making it difficult for businesses and consumers to borrow (Love, 2011). Thus leading to businesses failing and less jobs being created. The large amount of debt had also taken its toll on the job market. Between 2007 and 2009 employment dropped by 8 million workers, causing the unemployment rate to go from 4.7 percent to 10 percent (McConnell, 2012).
Between January 2008 and February 2010, employment fell by 8.8 million, the largest decline in American history. The 2008 Recession, which officially lasted from December 2007 to June 2009, began with the bursting of an 8 trillion dollar housing bubble. Job losses during the recession meant that family incomes dropped, poverty rose, and people all over the country were suffering. Things like this don’t just happen. Policy changes incorporated with the economy are often a major factor. In this case, all roads lead to one major problem: Deregulation. Deregulation originating from the Carter and Regan Administrations, combined with a decrease in consumer spending, and the subprime mortgage bubble all led up to the major recession of 2008.
With the after effects of the stock marketing falling in 2008, and less investments involving risk and the GDP falling. This is when the economy began turning internationally. With imports, exports and foreign investment falling along with the combination of employment and production being cut back this recession affected the global economy. The unemployment rate in the United States began to skyrocket as well. Below is a graph depicting the unemployment rate in the United States during the 2008 recession. This graph data is from Oregon Economic Crisis Analysis.
The Bureau of Labor Statistics characterizes a recession as a general slowdown in economic activity, a downturn in the business cycle, and a reduction in the amount of goods and services produced and sold. But what usually causes this slowdown to begin with? Each recession has its own specific causes, but all of them are usually preceded by a period of irrational exuberance which is part of the expansion phase of the business cycle. The most recent one, which officially lasted from December 2007 to June 2009, produced the greatest US labor-market meltdown since the Great Depression. This Great Recession began with the bursting of an 8 trillion dollar housing bubble. Irrational exuberance in the housing market led many people to buy houses they couldn’t afford because the thought was that housing prices could only go up. The bubble burst in 2006 as housing prices started to decline, threw many homeowners off guard, who had taken loans with little money down. When the realization set in that they would lose money by selling the house for less than their mortgage, they foreclosed. This triggered an enormous foreclosure rate which caused many banks and hedge funds to panic after realizing the looming huge losses due to the buying of mortgage-backed securities on the secondary market. By August 2007, banks were afraid to lend to one another because they did not want these toxic loans as collateral. This led to the $700 billion bailout, and bankruptcies or government nationalization of Bear Stearns, AIG, Fannie Mae, Freddie Mac, IndyMac Bank, and Washington Mutual. Consumer spending experienced sharp cutbacks due to the resulting loss of wealth. The combination of this along with the financial market chaos elicited by the bursting of th...
December 2007 was the beginning of the Recession, and was by far the most dramatic employment contraction since the Great Depression. The Recession had massive job loss, fallen income for workers,
A loss of a job also means the loss of socializing with coworkers. "According to psychologists, in terms of stressful events, the loss of a good job ranks only slightly below a divorce or the death of a loved one" (McEachern, 2015, pg. 104). Economist debate that the other consequences of unemployment can have a critical effect on the person 's health than the loss of salary itself. Unemployment has been connected to a larger prevalence of delinquency and to a range of illnesses, including chronic disease, thoughts of suicide and depression. Individuals who do not work have been reported as always sad, but if they find a job, their sadness decreases simultaneously. Even though people may complain about their jobs, they still need their jobs not only to maintain their livelihood, but for their own personal sake. Furthermore, the individual price of unemployment levies a charge on the economy all because fewer goods and services are being manufactured. The ones who are actually eager and capable to work and they are having hard time finding a job; their employment is gone indefinitely. "This lost income and output coupled with the economic, psychological cost of unemployment on the individual and the family are the real costs of unemployment." (McEachern, 2015, pg.
The largest cause of unemployment can be attributed to recession. The term recession refers to the backward movement of the economy for a long period. People spend only when they have to. (Nagle 2009). With people spending less there would be less money in circulation therefore, enterprises would suffer financially and people would suffer too. This is so because recession reduces the fiscal bases of enterprises, forcing these enterprises to reduce their workforce through layoffs. These enterprises lay off their workers in order to cut the costs they incur in terms of wage and salary payments.
Unemployment is a macroeconomic factor that is pertinent to an extensive economy at a regional level. Therefore it affects a large population rather than a few select individuals. Unemployment does not only have social costs, but economic costs too. The ILO, International Labour organization, defines unemployment as, ''People of working age, who are without work, but available for work and actively seeking employment.'' Therefore implying that it is a state of an individual looking for a job but not having one. Unemployment is one of the key indicators in determining the economic stability of a country; hence governments, businesses and consumers closely monitor it. There are numerous aspects that might lead to unemployment such as labour market conflicts and recessions in the economy. There are two main types of unemployment, which can be focused on, seasonal and cyclical unemployment. Seasonal unemployment occurs when a person is unemployed or their profession is not in demand during a particular season. On the contrary, cyclical unemployment occurs when there is less demand for goods and services in the market so consequently supply needs to be decreased.
The effects of prolonged unemployment went from lowered health and living standards, to protests, and general anger at the current state of affairs. This high unemployment rate was brought on by the economic backwash caused by the Great Depression. The depression took the wind out of the sails of British commerce. It lowered the expectations of common people and made them question the system under which they lived.
In December 2007, the United States of America experienced a very scarce yet appealing setback. In fact, because of this specific dilemma between 200,000 and 500,000 were left unemployed and without a stable home. The national Bureau of the Economic research defined this nationwide downfall as “The great recession”. According to the U.S Bureau of labor statistics the unemployment rate has not made a drastic improvement since the start of the great recession. Unemployment has become that is still rising today with a slow rate of change. Unemployment is usually expressed as a number or as a percentage of a larger number. Although it has been ambiguous who has to be included in the percentage, there are members of society without a job, for whom it is certain that should not be added. Officially the unemployed are the people who are registered with the government as willing to work and able to work at a going wage rate but can’t find suitable employment despite an active search for work. In the article “why long-time employment can’t get back on track”, the author begins speaking on a ...
The most common causes of unemployment are getting fired and layed off for specific reasons. People might get layed off if a company is going out of business or maybe if there are positions in the company that are no longer needed. It’s difficult to find a job right away after being fired. Companies don’t want to hire someone who has just been fired for reasons such as failure to do a sufficient job, not showing up to work, stealing, etc. It’s also hard to find a job instantly after being layed off. In some cases the economy is down and it is hard to find any work in general.
Unemployment issue can lead to a lot of impacts to the economic growth. Higher unemployment rate will lead to increase government borrowing. When people are without their job, they would paid less in the income tax. So, it will cause a drop in tax revenue because there are lesser people paying income tax and spending less. Due to the loss of earnings to the unemployed, the government need to spend more subsidy for them in housing benefits and income support.
Current Picture: A substantial number of workers living in families have experienced some type of lay off. The unemployment rate has skyrocketed, leaving families to deal with the economical and psychological effects of unemployment. According to the Illinois Department of Unemployment the ILLINOIS JOBLESS RATE increased to 6.5% in February. CHICAGO -- The Illinois unemployment rate rose from 6.3% to 6.5% (seasonally adjusted) in February, as payroll jobs dropped slightly from a year ago, according to statistics released by the Illinois Department of Employment Security (IDES). “Employer payrolls, after adding jobs in January, posted a modest job decline in February, as businesses again postponed hiring due to uncertainties about the economy,” said IDES Director Brenda A. Russell. “While job gains were recorded in seven of the state’s 12 major industry groups, they were outweighed by continued losses in Manufacturing, and in the Transportation/Warehousing sector. These losses brought total payrolls down marginally from their year-ago count.” The total number of people working in the state fell 42,200 to 5,954,700 in February, a decline of 0.7%. The number of unemployed rose 9,700...