Why Is Unemployment A Problem

Topics: Economics

Factors leading to unemployment

In recent times developed countries including the United States and other developing countries continue to face high rates of unemployment with the impact visible in various sectors and industries feeling its pinch more than others. Experts associate these elevated levels with the recession, and the result is various economic and social issues. It is a negative economic phenomenon which has a significant impact on different parts of the society (Zamfir, 2012). It has effects on economic indicators, but the social implications are also important.

What Are The Major Problems Caused By Unemployment?

An economy’s well-being depends on the financial capability of the said economy. It, therefore, means that for individuals in society to ensure that their holistic health is catered for, there is a need for employment for every eligible person. Unemployment, on the other hand, hinders affordability and delivery of the necessary forms of health. It is, therefore, an indication of the magnitude of influence unemployment has on health (Zamfir, 2012).

People find fulfillment in the various employment opportunities they hold. Having a job means high levels of self-confidence, self-esteem, and self-worth for almost all people. Therefore when unemployed there are decreased levels of personal morale and other aspects that work within the person. Eventually, the effect extends to the society where negative personal feelings affect how people interact with each other in society.

Unemployment is a prerequisite for various problem behaviors in society and specifically high rates of criminal activities, the prevalence in homicides and suicides.

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People have needs and demands that need employment to fulfill and maintain. Therefore unemployment will push people to places they do not want to go. The pressure may make some commit suicide or even steal just to survive (Pologeorgis, 2014). Another person may commit suicide due to high levels of stress or even depression as a result of unemployment.

Effects of unemployment

Effects of unemployment on parents trickle down to their children. Evidence indicates that those children whose parents get laid-off from work tend to redo a grade in school. Eventually, the annual income of those children whose fathers get displaced from work is ten percent lower than those whose parents remain employed. It is a clear indication of how the impact of unemployment affects the children. As time moves, it gets hard for an individual who is employed finding a job. It is a situation that causes frustration and high-stress levels within the individual.

Unemployment also means that development in the society lags behind. There will be low quality housing, inadequate access to various services and other public amenities and underfunded schools and institutions. Diverse communities are often vulnerable to unemployment. The communities have higher levels of stress due to unemployment (Pologeorgis, 2014). They include the disabled, women and much more. The overall effects of unemployment on the society are often universal, and communities will experience almost similar consequences. Members of the community become frustrated, develop feelings of anger, go into alcoholism and drug abuse divorce and much more.

Unemployment has significant effects on various economic indicators. It is however just one of its primary effects. Therefore unemployment is as much a social issue as it is an economic issue. The different effects it has on the society as a whole, and its members give an indication of the magnitude of the problem. Therefore unemployment affects society in many ways that people may recognize. It calls for identification and development of measures that deal with the social aspect of unemployment.


Pologeorgis, N. A. (2014). Unemployment, an Economic Problem or a Social Issue: empirical study. International Journal Of Business & Economics Perspectives, 9(1).

Zamfir, V. (2012). The effects of unemployment on social issues and health matters. Review of Economic Studies and Research, 5(1), 125-144.

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Why Is Unemployment A Problem. (2019, Nov 27). Retrieved from https://paperap.com/paper-on-unemployment-as-a-social-issue/

Why Is Unemployment A Problem
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