The Results that Unemployment Causes

Crime and Unemployment

Unemployment has direct relation with crime rate. Increase in unemployment results in increasing crime rates. With people unable to find jobs they find criminal ways of making money. However, the overwhelming abundance of research directed at crime and unemployment views the issue from the starting points of poverty, education, and unemployment as the causatives.

Economic impact

High unemployment is a symptom of waste — for during recessions, when unemployment is high, the economy is not producing up to high level. When economy is not producing sufficiently, we can say that we are unable to use our full resources for production purposes. Economy will not grow as fast as it can if become able to produce at high level.

Social impact

Understanding the sources of unemployment has proved one of the major challenges of modern macroeconomics. Voluntary unemployment may be or when qualified people chose not to work out the going wage rate unemployment occur. The key element in understanding involuntary unemployment is the inflexibility of wages in the face

The upward creep in the natural rate arises mainly because of demographic trends particularly the higher proportion of teenagers in the labor force. It has resulted in major depressions for people and even has forced people to an extent to commit suicide.

Efforts of Government

The government is trying to reduce the unemployment rate. The liberal economic and fiscal policies of the government may reduce unemployment rate because they can create new job opportunities and business in the country. The government has announced an economic revival package to stimulate investment and industrial production and boost exports.


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