The Effects of Unemployment
Roderick C. LaGrone
January 28, 2011
The Effects of Unemployment
Over the past ten years there has been a great shift in society’s employment system. Corporate America has taken major cutbacks in the working labor department that has left many citizens unemployed and destitute. Anger and concern over layoffs, wage unproductivity, declining benefits, and the movement of jobs overseas has left citizens with harsh and undesirable views of the actions and motivations of Corporate America. With the unemployment rate on a downward slope, American citizens have become distressed which has resulted in emotional, social, and, economic ...view middle of the document...
Few open positions are available with dropped wage rates. Jobs are opening up there is an indication that many of those that were unemployed have begun to take jobs for lesser earnings, and no benefits.
With unemployment on a steep incline and revision of the workforce on a slow development many people are greatly affected. Unemployment not only affects those out of work, but it also affects individual family members and communities as well as society. Unemployment generates poverty; causing a negative effect on the American society as a whole. Many families suffer a shocking toll with an emotional, psychological, spiritual, and physical downfall. Families are still in distress for a number of many reasons. One reason that individuals are in distress and dread unemployment is due to the disgrace society has attached upon unemployment. Many people feel as if they do not have a job, that society will look down on them; making them feel unaccepted by today’s society. Being unemployed causes many people to suffer from loss of confidence, self-esteem, and even become depressed. In The Effects of Unemployment, “more than one in four of the unemployed report major problems in relationships with a spouse or close relative tearing down the family dynamics”, and “more than one in five has sought help from a medical professional for major health problems they believe stem from their joblessness” (J. Kibilko, 2011). Unemployment brings about stress because in many families individuals lives and lifestyles take on a drastic change. These drastic changes could include a man losing his which could result in him having relational issues with his family and economic challenges which could also lead to him losing his home due to depleted funds.
Unemployment causes a great deal of social and economic problems; it reduces national income, and decreased living standards. When individuals lose their source of income and have issues finding another job that meets their living standards, they tend to accept jobs that are below their standards and will usually work for as low as minimum wage to make ends meet. Because of this employers tend to find laborer more easily and are less likely to increase wages to attract workers. When employers lower their wages American society is once again affected by lowering consumer goods and capital.
The increase in unemployment not only affects individuals, their families, and communities, but unemployment also causes a loss of human capital. When citizens are laid-off they cause a loss in human capital because they don't contribute skills and experience to the workforce. Securing a job is more difficult the longer a person is out of work because they are less preferred as new workers. The unemployed experience a loss of self-esteem and dignity which reduces their motivation leading to long-term unemployment and dependence on welfare for income support. Thus, unemployment results in a decline in labor market skills because...