IMPACT OF UNEMPLOYMENT ON SOCIETY AND THE ECONOMY

Abstract

Unemployment is a significant issue that impacts both society and the economy. Its effects are not limited to the loss of income for the unemployed but extend to deeper consequences at both individual and societal levels. Studies on the impact of unemployment have shown that it leads to increased stress and mental health issues among the unemployed, as well as contributing to poverty and inequality in society. Long-term unemployment hinders the development of skills and reduces the chances of re-entering the labor market. Economically, unemployment directly affects GDP by reducing production and consumption within the economy, as well as increasing government expenditures on unemployment benefits. This paper aims to analyze and understand the effects of unemployment on society and the economy, while also proposing measures to mitigate these impacts, ultimately promoting sustainability and stability for both society and the economy in the long term.