Understanding Unemployment: What It Is and How It Affects Everyone

Unemployment is a state where people who want to work and can work are deprived of jobs. Let us look at this through an example:

For example, Sarah lives in London. She has been employed by a car-producing factory in town. At one point in time, the factory closed, and Sarah remained jobless. Now, she’s in town, all over the place, picking up a job here and there. While she’s doing exactly that, we say Sarah is “unemployed.”

Unemployment is not simply a state in which an individual like Sarah loses a job. It’s a loss of work in the context of more than one person in a country. When millions of people are jobless, it creates great turmoil.

How Unemployment Affects the Government

1. Less Money from Taxes

If they are unemployed, it means they don’t have work and, therefore, no money to earn from the same. If they have no earnings, definitely they cannot pay any taxes. The government will, therefore, substantially have limited spending on important issues, such as schools, hospitals, and roads.

2. Economy of the Country Slows Down

It is better to think of a country’s economy as a great machine. When many individuals are at work, the machine continues to run and produce many things; when a large number of people do not work, the machine begins to slow down, producing much less. This is an unpleasant situation for all.

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3. More Money Spent on Benefits

When people are not employed, more of them tend to rely on the government for such benefits as food and homes. The government is, therefore, said to be spending much money on benefits for the unemployed, hence less money for other sectors.

4. Expensive Training Programs

The government often has to pay for training programs to help such people find new jobs. The training programs are those that, through teaching people new kinds of skills, are supposed to make them able to work again. Such programs do cost a lot of money, and this way, the government has got less to spend.

How Unemployment Affects People

1. Lower Quality of Life

First, when someone loses his or her work, the income also decreases. The amount of money being brought home is less, and this implies that the person might not afford some things due to lack of money. Their life becomes harder and less enjoyable.

2. Loss of Job Skills

When individuals have remained unemployed for considerable durations, aspects of their job skills start evaporating from their memory, thereby reducing their productive capacity in the future.

 3. Feel Sad or Worried

Being unemployed is a very big deal. They might lose their self-assurance, be stressed over how to pay for the things they need, feel anxious all the time, and worry about being able to support their families.