Question

What are the social and economic implications of unemployment?

Answer 1

Economic Implication of unemployment is that the economy is not able to provide enough jobs to the person who is able and willing to work at ongoing wage rate. It also means that market clearing wage is such that there is unemployment in the economy. When prolonged unemployment persists, the economic activity suffers and the growth rate of the economy plummets. Further, in subsequent periods, there is problem of deficient demands as the income source of unemployed is snatched.

Social Implication of unemployment is that with unemployment there is not enough opportunity for the individual to get better healthcare as the income required has gone down due to unemployment. Inequality grows and there is growing restlessness in the economy. There is also one implication of unemployment that the social relations deteriorate and self-confidence of the unemployed suffers.