Prolonged periods of unemployment have numerous disadvantages, such as making it harder to find a new job, creating more complicated situations when filing taxes and inconsistency in receiving payment. Difficulties tend to increase in severity as the period of unemployment persists.
The federal government has an established system that aids anyone who has lost their job. This system includes both resources to help in finding a new job, such as skill training, as well as payment during the period of unemployment. Each state has different rules regarding what is required to collect unemployment benefits, however, most require the recipient to be actively searching for a new job. After a certain period of time, some states can require the recipient to accept any offer they receive. This can be incredibly problematic for some, as the job may offer a lower pay rate than the person deserves or involve a lengthy commute.
Unemployment payments are also notorious for being late or incorrect, as millions of citizens are processed each year. If one is unemployed and relying solely on benefit payments to pay his or her bills, late payments can lead to great financial hardship.
Another issue is that many employers look down upon candidates who have been unemployed for long periods of time. Some interpret this as an indication of poor skills or other issues with the candidate.