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Some of the problems are: 1) financial losses of the unemployed worker, 2) burden on the tax payers providing benefits to the ex-worker, 3) national economy suffers because of lower output, 4) desperate people resort to crime to have basic necessities of life, 5) health, self-esteem, depression, illness, brought on by the trauma, etc. The list could go on and on.
Wiki User
∙ 14y ago
Wiki User
∙ 15y agoThere are many social problems caused by unemployment. Cancellation of health insurance, not having enough money to continue current life style, low self esteme, having to do without or wait for necessities, and lowering your standard of living are only a few.
Wiki User
∙ 12y agowell i think it has a major negative effect because this lead persons to go to illegal activities such as drugs. It also contributes to the poverty population as unemployment leads to no source of income and without money the basic needs would not be reached and they themselves and those who are depending on them will indeed suffer.
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