The Unemployment

Cause

Unemployment is caused by various reasons that come from both the demand side,

or employer, and the supply side, or the worker. Demand-side reductions may be caused

by high interest rates, global recession, and financial crisis. From the supply side,

frictional unemployment and structural employment play a great role.

The impact of unemployment can be felt by both the workers

and the national economy and can cause a ripple effect.

Unemployment causes workers to suffer financial hardship that

impacts families, relationships, and communities. When it happens,

consumer spending, which is one of an economy’s key drivers of growth,

goes down, leading to a recession or even a depression when left unaddressed.

Unemployment that lasts longer than 27 weeks even if the individual has

sought employment in the last four weeks is called long-term unemployment.

Its effects are far worse than short-term unemployment for obvious reasons,

and the following are noted as some of its effects.

Some 56% of the long-term unemployed reported a significant decrease
in their net worth.

Financial problems are not the only effects of long-term unemployment
as 46% of those in such a state reported experiencing strained family
relationships. The figure is relatively higher than the 39% percent who
weren’t unemployed for as long.

Another 43% of the long-term unemployed reported a significant effect
on their ability to achieve their career goals.

Sadly, long-term unemployment led to 38% of these individuals losing
their self-respect and 24% seeking professional help.