Everyone knows that being out of work is terrible. The financial and, consequently, personal impact of being without a job reaches farther than an individual’s lost earnings, a government’s lost income tax revenues, and a society’s overall social stability. Some people are lacking in education, expertise or the training for a good job. Many, after losing their job, are now overqualified or growing older and aging out of the workforce. For some, after years of productive and successful careers, something strikes and they lose it all.
The impact of unemployment on a person is easy to envision. Every time a person loses their job, that individual’s standard of living is immediately affected. Nowadays fewer people can accumulate enough savings to help them get by until they secure another position. This threat of job loss translates into the average individual living under the stress of being just a couple of weeks outside of severe budgetary problems without a paying position.
Those eligible for the various unemployment benefits and different types of government assistance will find that these benefits provide a mere 50% or less of their previous earnings. According to Eligibility.com, in addition to applying for food stamps, many people will drain any savings they do have, creating difficulties for themselves in the future.
Experiencing job loss changes how individuals and families think about themselves and their future. Being unemployed for a long time may cause a worker to question the worth of education and training. Some will feel less willing to devote many years to the schooling and training needed for specific careers.
There are even more damages individuals must face. An extended period of unemployment negatively affects the psychological well-being of a worker. This decrease in mental health, in turn, causes and intensifies an individual’s general health, reducing lifespans.
Community, Country and Beyond
Buyers, in addition to commercial enterprises, must believe in the economy for it to recover. Workers need to feel positive about their future if they are going to commit to acquiring the competencies many jobs need, as well as grow their savings.
Consider the potential damage facing the oilfield sector. Layoffs, less business, and dwindling home values in states that produce oil show how far-reaching the consequences of unemployment can go. Undeniably, one speculation states that up to four jobs might eventually vanish for each position lost in the oil industry.
Long-term joblessness will result in the dwindling of skills that permanently will rob the marketplace of knowledge. The lack of earning may also compel some families to opt out of higher education programs or skilled trades courses, again starving the economy for the next generation.
Unemployment leads to higher payments from state and federal governments and individuals receiving government support cannot spend as much as before. Income tax, borrowing, spending cuts, all show the complexity of unemployment. Simply put, unemployment is not just a monetary issue. Being without a job is interlinked with so many other facets of life that a plan to end joblessness must involve more than raising the cost of a product or service.