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What are some causes and consequences of unemployment?

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Quick Answer

Some causes of unemployment include quitting a position and looking for a new one, being laid off due to lack of work, and a company reducing the work force. Some of the effects are feelings of shock or concerns about meeting financial obligations for the person who is suddenly unemployed.

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Full Answer

A company may reduce its work force due to the closing of a division or because the economy has slowed. This can leave employees out of work. Another reason for unemployment is due to a person trying to return to the work force after pregnancy or school and not yet finding work.

A person who is out of work for an extended period may incur increased stress about paying bills. He then must need to find ways to meet financial obligations while looking for a job. This stress can also have a negative impact on relationships and family dynamics.

On the larger scale, when work is available, but there are not people who are skilled to perform it, productivity in a company goes down. This can lead to companies losing money due to an inability to serve their customers' needs. The workers within the company may become overburdened, leading to a need to take extra time off from work. Customers may begin to look at other companies for business.

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