The costs of unemployment.

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  1. Unemployment
  2. Effects of unemployment
  • Effects on the individual
  • Effects on the society
  • Effects on the economy and the government
  1. Bibliography

The Cost of Unemployment

By: Tshwanelo Ramekgwe

Student number: 200914443


Unemployment refers not only to people that have lost their jobs but also to people that have never been able to find employment to begin with. Unemployment afffects a lot of people both directly and indirectly. People rely on their income for a living and to maintain their standard of living. So when someone is unemployed it leads to a lot of emotional and finacial problems for the workers and their families.

Some of the effects of unemployment include:

  • Effects on the individual
  • Effects on the society
  • Effects on the economy and the government

Effects on the idividual

Being employed gives people their sense of identity, especially their social identity, it provides a sense of purpose and the income provides a means of freedom and control outside the workplace. Unemployment  therefore hits individuals the hardest,the jobless lose their self respect, purpose, sense of achievement and ofcourse income. It is not just the individuals themselves that are affected by this but their families too. Homes and cars are lost, arguments at home, even divorce rates have been shown to rise due to the fact that people cannot solve their finacial problems. The rate of homelessness rises and so do physical and mental ilness, even excess borrowing whitch actually prolongs the suffering even when another job is found. To make things worse, the longer a person stays unemployed the harder it becomes to find a job. The long term unemployment can really suffer because employers are unwilling to take a chance on someone that no one else is willing to hire, employers find employment gaps as a negative aspect.

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Effects on the society

Unemployment creates ineqaulities in wealth and income between people in societies. When people are unemployed they lack the income necessary to sustain themselves and their families and a lot of the time this can cause people to turn to illegal means of making money just so that they can feed their families and these can have detrimental effects not only for  the individual but for their local community as a whole because it leads to increased rates of crime.The lack of money to spend on private health care , healthy goods and living ...

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