Effects and Kinds of Unemployment

Unemployment is a challenging period for any person who experiences it. It becomes more challenging when you have a family of your own. The main thing that comes to mind when being dismissed from a job as a company measure to save on costs is what becomes of your family in the coming days. It is inevitable to entertain thoughts as to how to make both ends meet and come up with alternatives to support the needs of your spouse and children. Tuition fees and other bills around the house are major concerns, as well as other finances on the car, house mortgage, insurances and other basic needs. When not dealt with effectively it may lead to depression. It is very important to be clam despite the conditions so that you can come up with ways to go positively go through this stage while actively seeking for a new job.

One common result of unemployment to a person is emotional instability. Of course, in order to save on expenses while looking for a job, the entire family will need to reduce their standard of living. Expenses that are not urgent will need to be postpones or cancelled. If we are to look at the effect it makes to the society, it is also a cause for concern. The productive hours of a worker is put to waste. Unemployment will create lesser production for example in the manufacturing sector. Eventually, not enough goods will be made available to the consumers.

Unemployment has three common kinds. One is frictional unemployment where workers are simply between jobs because of relocation or just waiting around to get the next available job fit for their credentials. Structural unemployment occurs when people are out of jobs because they are replaced by rapid changes in technology. Cyclical unemployment is the one most commonly discussed when an economic condition causes a huge impact in the society where employers are not creating enough jobs for active jobseekers due to a general downturn in business.