The Psychological Effects of Unemployment

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Unemployment has become a very prominent issue worldwide; moreover in the United States the unemployment rates have been persistently high. Since December 2008, the unemployment rate in America has been over 7 percent, and in late 2009 it peaked at 10 percent (Nichols, Mitchell, and Lindner 1). Despite the gradual improvements in the labor market, the supply of workers available in relation to available work, long-term unemployment – the share of the unemployed who have been out of work for more than six months – remains at unprecedented levels. The fraction of unemployed workers who are long-term unemployed has hovered around 40 percent from late 2009 into 2013, although it had never previously risen above 30 percent since the Great Depression (Nichols, Mitchell, and Lindner 1).
With the economy going through a recession and prices rising, being employed and having an income is a significant part of life. But the income is not the only facet to being employed. In many ways, being employed can affect every single aspect of life.
A job can be everything that one relies on to support their whole life. When employment that has such a huge impact on one’s life is suddenly removed, it can cause a huge negative change. “The unemployed can suffer distress when their job activities, which allowed these functions to be fulfilled, are lost” (O’Brien 242). This is why unemployment can have such detrimental effects upon one that is no longer in a job.
“As unemployment has recently become a visible social problem, a number of studies on individual reactions to unemployment have appeared” (O’Brien 215). The individual reactions and effects of unemployment can be seen in many ways, and many repercussions can strand from unemployment, whether ...

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