Poverty is caused by unemployment. The burden of debt grows. The economy's troubles will worsen. People need jobs to make a living. Without work, there is no way to pay the bills or save for the future.
Unemployment is harmful because it causes loss of income and therefore puts pressure on individuals and families to find more ways to raise money, often by taking on more debt or turning to friends and family. This can lead to mental illness as people try to cope with the problems created by their unemployment. Physical illness can also result from stress and lack of sleep due to joblessness. Unemployment can also damage relationships with family and friends since people cannot go out and spend what little money they have when they need groceries or medical care.
There are several examples in history of widespread unemployment causing social unrest. During the Great Depression of the 1930s, millions of Americans were unable to pay their bills and went hungry. Workers protested these conditions by going on strike. In another example, during the 1980s, large numbers of people were unemployed for many months at a time, especially after the collapse of manufacturing industry in northern Italy and Germany. There was also much anger towards employers who closed factories and then moved abroad, leaving their workers behind.
Unemployment is caused by a variety of factors on both the demand (or employer) and supply (or worker) sides. High interest rates, the global recession, and the financial crisis may all contribute to demand-side cutbacks. On the supply side, frictional and structural unemployment are significant. Frictional unemployment occurs when individuals cannot find employment at any price, while structural unemployment results from changes in the structure of the labor market, such as the aging of the population or increased automation.
Frictional unemployment is usually attributed to changes in the demand for labor, while structural unemployment is attributed to changes in the supply of labor. Both types of unemployment exist and play a role in determining overall levels of unemployment. However, in most cases, one factor is responsible for causing both frictional and structural unemployment.
In some countries or regions, there are more job seekers than jobs available. This leads to "job hunting" -- an ongoing process by which unemployed individuals look for new opportunities. The main reason for this phenomenon is that people remain unemployed for various reasons, including change in career direction, lack of experience, etc. Sometimes poor job prospects make it difficult for individuals to find work even though they want to.
In other words, job hunting is responsible for both frictional and structural unemployment. In these situations, governments can help out by creating better-quality jobs with greater protection against layoffs.
Unemployment has societal implications that go beyond monetary value. Unemployed people not only lose money, but they also experience physical and mental health issues. Government expenses extend beyond the payment of benefits to the loss of worker productivity, which affects the gross domestic product (GDP). Unemployment also increases crime rates because those who are unemployed or lack job security tend to steal to support themselves or increase their income.
Employers withhold employment taxes from their employees. If an employer fails to do so, then the employees must complete a U-4 form to declare their unemployment benefits as exempt wages. Employment taxes include federal income tax withholding and Social Security and Medicare taxes. When an employer fails to withhold employment taxes, the employees are burdened with additional tax liability. This could lead some workers to choose not to apply for unemployment benefits even if they are able to work during times of need.
Employees should always check with their employers to make sure that they are eligible for unemployment benefits before applying. If they fail to do so and later find out that they are not eligible, then they may be able to file a claim for wrongful denial of benefits. Employees should also keep in mind that unemployment benefits can't be paid out if they are already receiving disability payments from another source such as Social Security. Disqualified applicants who believe that they have been wrongly denied benefits can appeal certain decisions made by state agencies. These cases generally take several months to resolve.
High unemployment has societal consequences such as increased crime and a lower percentage of volunteerism. Employment also has moral implications for individuals who feel that they have done everything possible to find work but cannot find a position.
Unemployment can have a negative impact on your finances. When you are employed, you earn an income which is used for important things in your life such as paying bills, saving for the future, and giving to charity. If you are unemployed, these activities become more difficult because there is no way to pay for them. In addition, if you were relying on your employment check for stability, then losing your job would be very stressful.
Unemployment can also have a negative effect on your credit score. If you cannot pay your bills, the only option available to lenders is to report your debt to a collection agency. This will appear on your credit report and will damage it significantly. Even after you find new employment, if you do not pay off your debts quickly, more companies will see you as risky credit and offer you less favorable terms when you apply for jobs.
Finally, unemployment can lead to financial hardship. If you cannot find new employment soon enough, you may have to apply for government assistance programs.