Unemployment is bad because it has negative psychological effects on individuals, families and communities. According to the American Psychological Association, unemployed individuals are twice as likely as individuals who are employed to suffer from depression, anxiety, psychosomatic symptoms, low sense of well-being and poor self-esteem.
Women are more negatively affected by unemployment than men. Women more often report levels of stress that cause them to choose unhealthy foods or skip meals. The American Psychological Association reports that unemployed women are also more likely to report physical symptoms of stress, such as irritability, anger, fatigue and lack of energy.
Children of unemployed individuals experience higher levels of stress and more symptoms of depression. This may be due to the fact that they could be punished more as a result of the unemployed parent's high level of stress. Depression in children can result in problems at school, substance abuse, high-risk sexual behavior, physical health ailments, problems in social relationships and increased risk of suicide.
Neighborhoods and communities are also negatively affected by unemployment. Lack of monetary resources due to unemployment may result in poor-quality housing and schools that are not properly funded. Unemployment can also lead to social unrest and overall disorder in communities.