Login with Facebook

What are the consequences of unemployment?

Unemployment is an economic, political, and social scourge that affects all socio-professional categories (employees, workers, and managers). These direct and indirect consequences concern job seekers, as well as employed workers, business leaders, and the competitiveness of businesses. The additional financial costs generated by unemployment and the fear of unemployment also contribute to widening the public debt of the state and the deficit of the health insurance fund.

What are the direct consequences of unemployment?

1. The first consequence of unemployment is the loss of purchasing power and household debt. By finding themselves unemployed, the employee loses 25% of his income, which decreases according to his duration. At the end of the entitlement, the unemployed person only receives the RSA (active solidarity income). If the household has taken out a mortgage and consumer loans, this loss of income can lead to over-indebtedness. The interruption of payment of drafts and credits triggers a recovery procedure, the seizure of property, and, ultimately, the eviction from the housing.

2. The second concern is the physical and mental health of the unemployed e.g. the identity, social status, and meaning of life of an individual being closely linked to the daily practice of professional activity. The long-term unemployment may cause a collapse of his personality and his mental balance. By being prolonged, this stressful and anxiety-provoking state can cause more or less serious diseases, such as insomnia, depression, cancer, etc., and sometimes lead to suicide. A 1997 study showed that a 3% increase in the unemployment rate could increase the suicide rate by 4.4%. Being more subject to cardiovascular and renal diseases (+ 50%), the mortality rate of an unemployed person increases on average by 75% compared to that of the active. According to studies that affirm that an increase of 1 million unemployed over 5 years causes 50,000 deaths and 60,000 cases of additional mental illnesses. These consequences encourage the unemployed more to find a job quickly than to take advantage of unemployment benefits and free time.

What are the indirect consequences of unemployment?

1. The first indirect consequence concerns the increase in delinquency and crime. Most of those convicted of theft, trafficking, or violence linked to unemployment. A study published in 2000 showed that one in seven prisoners had never worked and that one in two is or was a worker, compared to one in three in the general population. Faced with the difficulty of finding a job, a young person from disadvantaged backgrounds can, therefore, easily fall into delinquency. There is also a correlation between the rise in unemployment and the rise in delinquency. In the United States, a study has shown that a 10% increase in unemployment leads to a 4% increase in arrests, 6% in incarceration, 3.4% in economic crimes, and 0.8% in violent crimes. An increase of 1 million unemployed over 5 years is responsible for 14,000 additional criminal convictions. Unemployment being the main cause of delinquency, instead of increasing the number of prisons, the authorities should rather curb the rise in unemployment.

2. The second consequence concerns the impact of unemployment on employed workers. It is not just the unemployed who are affected by rising unemployment. It also concerns all employees who are “lucky to have a job”. The rise in unemployment maintains a climate of insecurity in the minds of employees who are afraid of losing their jobs. To avoid being unemployed, depending on their hierarchical level, the employee can use multiple avoidance strategies like submit to orders, contribute to the dirty job, accept the deterioration of their working conditions, compete with colleagues and not get involved in collective social demands. The fear of unemployment prevents social movements from mobilizing to fight against the deterioration of working conditions such as stagnant wages, flexibility, reform of the Labor Code, the breakdown of the social system, etc.

3. This submissive behavior causes a state of stress, which has repercussions on the physical and mental health of the employees. By agreeing to contribute to the dirty job, to intensify your work pace, the insecurity of a precarious job, the harassment of a boss, flexibility, unattainable goals, irregular and unpredictable schedules incompatible with a social and family life, etc. The employees are exposed to stressful situations and psychosocial risks. A report by the International Labor Organization (ILO) estimated that 40 million people were affected by work-related stress. While 36% said they were working very quickly, 33% said they were working at high speed. The same report indicated, on the one hand, that one in six workers, or 16%, had faced hostile social behavior (physical violence, sexual harassment, and harassment), and, on the other hand, that 80% of executives were worried about work-related stress, and that almost one in five saw violence and harassment as a major problem.

What are the consequences of unemployment on the economy?

Rising unemployment also has repercussions on the state budget. By causing both higher spending and lower tax revenues, rising unemployment is contributing to public debt. In order to calculate the cost, it is necessary to take into account direct and indirect costs.

The global annual cost of unemployment benefits would amount to € 45 billion. Since the direct cost of unemployment is € 174 billion. Direct costs do not include indirect costs linked to the social consequences of unemployment. Indeed, the increase in delinquency and incarceration, and diseases linked to unemployment and the fear of unemployment, provokes an increase in costs. According to a Canadian study dating from 1996, if the unemployment rate reached 10.4% of the population, its indirect cost would fluctuate between 5% and 12% of the GDP. If it reached 12%, this cost would represent € 253 billion, or 81% of state tax revenue. Indeed, to repair the damage caused by rising unemployment, the government must increase the budget of the Ministries of Labor and Employment, Social Affairs, Health, Justice, and the Interior.

The increase in delinquency increases the expenditure of the Ministries of Justice and of the Interior. Rising unemployment and the stress of fear of unemployment are also driving up spending on health. A 2013 study funded by the European Union estimated the cost of work-related depression borne by the social systems of European states at € 102 billion. The cost of health care was € 63 billion, and social benefits paid in the form of allocations amounted to € 39 billion. The rising costs of taking care of the physical and mental illnesses linked to unemployment and the fear of unemployment contribute to widening the deficit of the health insurance fund for the benefit of the pharmaceutical and health industries. Instead of attributing the deficit of the health insurance fund to the mismanagement of the social partners, it seems more judicious to attribute it to the rise in unemployment. 


And for business essayunemployment, don’t hesitate to Order now.

Author: Vicki Lezama


Comments

Need a custom
essay?

We will write it for you.
Order now

Free Essay Examples

Free essays:

An insight into the error-correction models
All you need to know about management discipline?
A historical overview of Financial Crises
All you need to know about reaction kinetics?
Basics the Game Theory in Cryptoeconomics
Business innovation ideas for making money
Biosensors for cancer diagnosis
Business Analysis: Pricing strategies and Demand Curve
Contracting with Moral Hazard and Adverse Selection
Conflict management in an organization
Can social media help overcome the problem of illiteracy?
Cultural heritage of indigenous people.
Digital Illiteracy
Determinants of business cycles fluctuations
Determinants of Unemployment and Inflation
Different tissues of the body
Economic Analysis of Market Structure
Expected Utility
Everything you need to know about workplace diversity
Efficiency and Market Equilibrium
Factors Affecting Purchasing Behavior
Financial Statement Analysis
Factors Influencing Interest and Exchange Rates
Fiscal and Monetary Policies in Response to 2008/2009
Game theory in microeconomics
Globalization: definition, causes, social impact and risks
Gene expression: what it is and why it is important
Global environmental issues
How to conduct economic research?
How to define the Enterprise Value
How cancer is developed - Cancer biology
How can financial illiteracy harm you?
Illiteracy in the USA
Importance and seven principles of quality management
Intermediaries and Government in Financial Crisis
Introduction to Econometric Application
Journalism: What is News?
Journalism: Broadcast media and Television Presenters
Journalism: Sources of News
Journalism and Law
Key Determinants of National Income
Key Factors That Affect Pricing Decisions
Kinetic models in biology and Related fields
Know about the different forms of traditional African dances
Latest technology trends
Latest dance trends
Methods of labeling of nucleic acid that enable their detection
Macroeconomics: International Economic Issues
Neuromuscular disorders
National Economies, Fluctuation, and Responses to Fluctuations
Neurotransmitters: what they are and different types
Nanomedicines to target tumors
Organizational motivation and its effects
Overcoming Hiring Challenges for Nonprofit Organization
Protection of cultural heritage in times of war and peace.
Principles of Corporate Governance.
Risk Sharing in Insurance and Asset Markets
Risk and the value of information
Reverse discrimination.
Role of media in wartime.
Segregation in the US.
Stages of the Consumer Decision-Making Process
Structure and function of blood vessels
Skills in Journalism: Effective Interview
Theories of Public Policy
The Economics of Uncertainty – Introduction
The different medical imaging techniques
Tips for labeling medical devices- Medical Entrepreneurship
Understanding Auctions and Auction Theory: Part 2
Understanding Auctions and Auction Theory: Part 1
Use of Machine Learning in Econometrics
Understanding Public Policy
Various theoretical perspectives of sociology
Virtual reality, what it is and how it works
What is Immune System and Immunotherapy?
What are the methods of valuation of companies?
4 Facts about Origin of Mathematics!
5 techniques to create an animation
10 emerging technologies according to World Economic Forum
10 strategies to maximize corporate profits
3d Model Of Building
6 Medical Technologies that revolutionized the healthcare in 2020
All you need to know about the ACA Code of ethics
Architecture and Democracy: An Introduction
Architecture and Democracy: Democratic Values
Architecture and Democracy: Democratic Procedures
All You Need to Know About a Synthesis Essay
An essential guide to understanding Film Theory
Application of Artificial Intelligence in Cyber Security
Applications of electrical engineering
Augmented reality: what it is, how it works, examples
Advantages And Disadvantages Of Social Networking
All you need to know about Cryptography
Applications of astrophysical science
All you need to know about architecture engineering
Applications of geological engineering
Artificial intelligence and medicine: an increasingly close relationship
An insight into Computational Biology
ACA code of conduct
A Rose for Emily
Applications of Mathematics in daily life
Architecture mistakes to avoid
All you need to know about Toxicology
All you need to know about Holistic Medicine
All you need to know about linguistics
An introduction to Linguistics and its subfields
All you need to know about Anxiety disorder
All you need to know about Drones
A Brief Insight into Political Science
Assumptions related to feminism
All you need to know about Byzantine emperors
All you need to know about labour economics
An insight into xenobots -the first-ever robots
An ultimate guide about Biomaterials
A Comprehensive Introduction to the Mona Lisa
Analysis methods of Transport through biological membranes
An ultimate guide about biochemical reactions
Analysis of brain signals
Artificial Gene Synthesis
Application to synthetic biology of CAD methods
All you need to know about metabolic pathways
Applications of BIOMEMS
All you need to know about the epidemiology
Asian vs. western leadership styles
All you need to know about Smart prosthesis
Analysis of Economy: Output of Goods and Services (GNP), and GDP on Economic success
A Guide to Pricing Strategies
An Overview Of Economic Studies
Analysis of Fiscal and Monetary Policies
Analysis of Business Cycles
Analysis of Consumption and Investment
A Look into Regression Analysis
Analysis of Household's Consumption and Savings Behavior
All you need to know about Capital Budgeting
All you need to know about risk management
Art looted in wartime.
Appropriate use of Data in Economics
All you need to know about reaction kinetics?
A historical overview of Financial Crises
All you need to know about management discipline?
An insight into the error-correction models
How to Write a Personal Essay
Housing Needs in America
How to Write a Description Essay
How to Create an Excellent Scholarship Essay?
How to write a cause and effect essay
How to Hire the Best Essay Writing Service Provider?
How to Write a College Application Essay?
How to get the most out of your English lectures
How to write Expository Essay
How to succeed in your psychology class?
How to Write an Academic Essay in the Shortest Time?
History of Journalism
How Different Sectors are Using Artificial intelligence (AI)
How to write an informative essay
How to deliver persuasive essays?
How to Give a Convincing Presentation
How to write an essay on leadership?
Historical Art Still Around Today
Humanoid robot: what it is, how it works and price
History of Chemistry
Healthcare Advanced Computer Power: Robotics, Medical Imaging, and More
Healthcare AI: Game Changers for Medical Decision-Making and Remote Patient Monitoring
How to understand different types of English
How to Cope with Chronic Pain
How African American choreographers and dancers have influenced American dance
How mobile robot can do in logistics or in production
How To Become a Successful Entrepreneur
History of the Philosophy of Feminism
How is the climate changing?
How to Track Your Content Marketing ROI
How to Gun control In the USA?
Historical and contemporary role of labour in the modern world
How breast cancers are classified?
How the cells of our body communicate?
How the Lymphatic System Works?
How Digestive System Works
How to complete your capstone projects effectively?
How to write a research project
Healthcare technologies that help patients with better self-management
How to choose the topic of the senior capstone project
How to make your business survive at economic crisis
How can immigrants blend in the American society?
How does the economics of war affect society?
Hate speech on social media.
How to Build an Economic Model
How to start a healthcare startup?
How can financial illiteracy harm you?
How cancer is developed - Cancer biology
How to define the Enterprise Value
How to conduct economic research?
Introduction to Urban Studies
Importance of dance in education
InMoov: how to build an open source humanoid robot
Importance of KYC verification to making the Blockchain secure
Importance of Rhythm
Importance of dance student evaluation
I/O control methods -types and explanations
Identity theft: what to do?
Introduction to Utilitarianism
Importance of 3d Modelling in Architecture
Importance of online journalism
Image processing in medical diagnosis
Introduction to USA Politics
Introduction to Comparative Politics
International Relations as a Major in Political Science
Importance of modern trade policy
Introduction to Journalism
Introduction to Writing a TV Script
Introduction of Microfabrication techniques
Introduction to Microeconomics
Interaction of Consumer and Firm Choices in Markets
Importance of corporate sustainability
Issues in International Monetary Macroeconomics
Introduction to Statistics and Data for Economics
Introduction to Data and Probability for Economics
Introduction to the Game Theory
Introduction to Econometrics
Introduction to Economic Information
Introduction to Market Equilibrium
Introduction to Economic Models and Application
Introduction to Empirical Research
Introduction to Econometric Data
Importance of Critical Thinking, Principles, and Goals
Introduction to Identification and Causal inferences
Introduction to Econometric Application
Intermediaries and Government in Financial Crisis
Importance and seven principles of quality management
Illiteracy in the USA
The Looming Energy Crisis in America
Top benefits of performance-based engineering
The More Languages You Know, The More Times You Are a Man
Things to consider while writing an Argumentative Essay
Top Ways to Improve Your Academic Writing Skills
Tips to Excel in Creative Writing
The origins of films in the early 19th century
Top career options in Architecture
The Elevator Pitch
Top finance trends 2020
The basic Structure and functionality of robots
The Way to Success
The election system of the President in the United States of America
Two-party System in United States of America
Top trends in urban design
The history and theory of African American filmmaking
Top benefits of creative writing
Tinnitus Guide: Common Symptoms and Treatment Options
The language of dance
The digital image processing management
Top famous politicians of the World
Top methods of political science!
The history of the feminist movement
The blood flow in cardiovascular system - Biofluid Mechanics
The best of Leonardo Da Vinci
The Structure and Function of Macromolecules
The structure of cell: a research on the bricks of the human body!
Tissue and organ construction: Adhesion and recognition between cells
The kinetics of the transformation processes
The Modeling of Biological Systems
Tips for writing a great thesis statement
The Defense mechanisms against infections
The impact of the technological innovations in medicine
Top journalism trends to know about
The relation between mass media & politics
Theranostics: Diagnosis and Care through Nanoparticles
The practical Applications of X-rays
The applications of Ultrasound in medicine
Transfer mechanisms of genetic information in Bacteria
The regulation of cellular metabolism in the diagnosis
The Principles of MRI Contrast agents
The technical basis of optical coherence imaging
The New Media: Emerging Trends
The Structure of Interest Rates and the Yield Curve
Technological perspectives and reflections of neural engineering
Types of bioreactors and their applications
The Role of Government Policy in Improving Economic Outcomes
Types of corporate responsibility
The Role of IMF in International Monetary Macroeconomics
Tools for investment decision making
The concept of Organizational Culture and its applications
The Conduct of Monetary and Fiscal Policy
The Basics of Financial Accelerator Models
Tips for labeling medical devices- Medical Entrepreneurship
The different medical imaging techniques
The Economics of Uncertainty – Introduction
Theories of Public Policy
What is a Definition Essay?
What are diagnostic essays?
What is the relation between art structural engineering?
What is a Narrative Essay
What are robotics and intelligence systems?
What are the benefits of studying health sciences?
What is artificial intelligence and why it matters?
What is comparative Literature?
Why study neuroscience
What is Wi-Fi and how does it works
What is French history famous for?
What are Humanistic Studies?
What is covered in Biophysics?
What is modern journalism?
What is Virtualization? Benefits & Applications
What are modern public relations?
What is plasma physics?
What is teacher preparation?
What is rapid prototyping for 3D printing?
What is contemporary European Politics?
Why should you learn American Ballet?
What is engineering physics?
What is the purpose of African American Literature?
Ways to learn the Rhythm
What is digital art used for?
What are Enzymes and how do they work
Who is the father of political science?
Why Study Political Science - Job?
What is the Philosophy of Feminism?
What is a quantum computer?
Ways B2B Startups Streamline Their Conversion Strategies
Why do biomedical signals need processing?
What are the long term effects of climate change?
Why study labour relations
What is Holoprosencephaly?
What is antisocial disorder?
What are the important principles of evolution?
What is the cytoplasm and its function?
What is biopolymers?
What Makes a Good Leader
Women empowerment in modern generation
What is the history of political thought?
What is Gene recombination
What is synthetic biology
What is business cost analysis?
What is Inflation
What are the consequences of unemployment?
What is lithotripsy and its types?
What is transition elastography?
What is the purpose of deep brain stimulation?
What is a Brain-Computer Interface (BCI)
What is neuroethics?
What is Market and Supply and Demand
What is optogenetics?
What are the techniques to record brain activity?
What happens if the interest rate increases?
What is immunotherapy?
What is the economic role of the financial market?
What are the factors behind illegal immigration?
What is the lymphocyte activation?
What is financial market and its types?
What is the structure of financial markets?
What are the methods of measuring business performance?
What is the Credit market?
What is business ethics and code of ethics
What are the Causes of financial instability?
What is MBA with Concentrations
What is regenerative medicine?
What is Population ecology?
What is Microfinance: evolution, and practices?
What is biotechnology and its applications?
What are Workplace diversity and its benefits?
What is the difference between a leader and a manager?
What Is Branding and best branding Business strategies?
Why are microelectronics important?
What are biologic drugs.
What is the Foreign Exchange market?
What is the role of scientific research in times of crisis?
What are the risks of international trade?
What is financial management?
What is gene therapy?
What is education economics?
What is regression analysis, and why should you use it?
What Is Technology Marketing And How Should It Work?
What is Management Accounting
What are the methods of valuation of companies?
What is Immune System and Immunotherapy?