The causes and effects of unemployment Essay Example
The causes and effects of unemployment Essay Example

The causes and effects of unemployment Essay Example

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This paper discusses unemployment in the household. The research paper looks at the causes of unemployment, from the loss of a occupation, the loss of a occupation due to being laid down, un renewed contracts, early retirement or the shuting down of industries. Unemployment is caused by unwellness, where a individual becomes terminally sick or is advised by the physician to go forth the occupation due to wellness grounds. Bad concern patterns are a cause of unemployment, with people losing their concerns to repossession due to loans. The major cause of unemployment is a hapless economic system as it affects all countries of out lives. The paper has gone farther and discussed the steps households take to pull off unemployment whether they are direct or indirect, and the effects unemployment has on the household. It further discussed the steps the house


hold should take to cover with unemployment and the unemployment period. From revising their budget, call offing or rescheduling payments on cards, occupation searching and community engagement. The paper has discussed the function the authorities plays in the relief of poorness.


Unemployment is an increasing issue in the household, with subjects like nutrient, shelter and vesture holding being in the Centre phase, unemployment is now a subject of treatment in the household. The loss of lively goon is non common to the staff of life victors but it is besides felt by the immature approaching professionals, those who are seeking occupations for the first clip. Unemployment is non restricted to those who have been working but it besides applies to those who were self employed and have lost their concerns for one ground or another Heidi

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( 2008 ) .

The on-going treatments on unemployment solutions have been centered on economic growing, but while this may assist, inquiries are raised on its speed in salvaging the household. The ground why the household is at the Centre on unemployment issues is because it is the basic unit of a society. Therefore if any social treatments and solutions are found for unemployment they should be able to help the household construction. All members of a society are all members of one household or another ; there this paper focuses on the issues of unemployment and the household.


The intent of this paper is to understand the causes and the effects that unemployment has on the household. Unemployment impact greatly on the life of persons, it affects on all facets of a individual. The impact of unemployment on an single affects the household every bit good and the society at big. It is for this ground that practical and applicable solutions to unemployment should be found. The determination of ways for the household members find ways to manage employment in the current state of affairs is of import.


The chief aim of this research paper is the survey of the determination on just solutions to the causes of unemployment in the household. The paper will be handled in footings of specific aims as follows.

Discuss the causes of unemployment in the household

Discuss the effects of unemployment, the direct and indirect patterns the household has on unemployment.

Discuss solutions to unemployment for the household

Causes of Unemployment

In many households the parents are the suppliers of the day-to-day staff of life, in the individual house clasp it is the individual parent who

provides for that household. There are households excessively where merely one of the partners works to supply for the household. An grownup kid can besides work to supply for the household. The beginnings of income in the household come from employment, either a white neckband or from manual work. Self employment is another beginning of income, where an person or a household ain and run a concern Britt ( 1994 ) .

The loss of a occupation is a cause of unemployment, when an person is fired, they loose their income. Peoples can be laid off from work with or without benefits, when 1 looses a occupation for bad behavior or misdemeanor of an organisations regulation they can be let travel without benefits depending on the organisations rules. In instance an organisation goes out of concern, is taken over by another concern or a instance of a contract stoping the employees can have benefits West ( 1994 ) . The loss of concern might intend that the benefits might come from the compensation from the bank or a authorities intercession in instance it 's a large organisation as it tries to bail it out.Sickness excessively can do unemployment particularly in instances of drawn-out unwellness, or a instance where 1 is advised by their physician to go forth their work for wellness grounds.

Persons loose their income if their concern near down, are declared bankrupt or are excessively ill to work. Incorrect investing programs besides cause unemployment ; a bad determination can do one to lose an chance of employment. Taking out a loan on the concern and neglecting to pay causes for a bank return over and

the stopping point of the concern Cantor ( 1985 ) . Taking a loan on the mortgage of the house, neglecting to pay is even a serious job, since one will free the concern and even the place. The chief factor in these scenarios is the economic grounds.

The recent economic crisis has caused existent fiscal strain on the society. With monetary values of fuel, transit and natural stuffs go up, this cause production costs to travel up, if production is expensive so the goods and services monetary values besides go up. A bad economic system means that at the same clip people have small or no money in their pockets and the small they have they are keeping on to it. This means that the rate of ingestion of merchandises and services goes down. Businesss so have to cut back on production cut down the working hours and even put down employees ; some concerns have even wholly closed to get by with this state of affairs Barling ( 1990 ) . The lying off of employees has caused unemployment, in the society and finally in the household. Therefore economic jobs are a cause of unemployment.

The other factor to see is that as people get laid away, so the employment rates besides cut down. Those looking for occupations will hold to do make with walking the way of looking for a occupation with people who have been working and are now laid off. They have to postulate with viing for the few occupations with those late unemployed, the hazard being that for those occupations available. These occupations may be seeking person with work experience, and

those who have been in the occupation market and are seeking get this opportunity since they have the experience compared to the fresh alumnus. While people are being laid away and others seeking to acquire employment, there is a category of persons that many leave out. We tend to look at the immature and bury about the older coevals, those who are working and still have clip on their retirement Linker ( 1983 ) . When an economic system crushes it takes down with it everyone, those who are staying a few old ages to retire can besides be affected. In the procedure of occupation cuts, organisations besides cut down their retirement age. Taking this batch of the mature, yet still can work place. They still get to bask the benefits of the retirement.

Effectss of Unemployment, Direct and Indirect Practices to Cover with Unemployment

The first consequence is the loss of a beginning of income, the loss of a manner to do money is the cause of loss of money. When this happens whether or if the individual was cognizant of it, when it eventually hits place that they have no income they experience daze. In a state of affairs where they knew the jobs at work and the possibility of the loss of the occupation, it does non come as a surprise. They may hold even been seeking to look for another occupation in the procedure. A concern adult male, who had a loan and was sing hapless concern, doing him to do late payments on the loan, may be anticipating the loss of his concern Twitter ( 2002 ) . The ill patient, who

finds out that they are terminally sick, is anticipating the loss of the occupation. They experience daze after when the truth sinks in, and they realize that they no longer hold a beginning of income.

When unemployment happens, and they start looking for another occupation to no help, and they have to utilize their nest eggs, that is when they realize the effects of the loss. When they make the realisation their attitude and personality alterations, the fact that their nest eggs are running out fast, they have no income is a seeking clip for them. They take clip to unjust from the modus operandi of working and traveling to work, they find is difficult to watch how they spend, since it takes clip to unfair Berry ( 1997 ) .

The loss of an income has an consequence on the whole household since, the attitude and the province of head of the unemployed besides affects the manner they interact with others in the household. The fact that they have to watch their disbursement, and that they can no longer bask the luxuries they enjoyed is a demotivator.

Unemployment means the loss of a beginning of income, deductions of this on the person and household is that, they can no longer do payments on a few things that they enjoyed before. It becomes a luxury to eat out, take the auto ; they have to take the coach or train. Family holidaies are reduced or even non taken in the terminal ; trips to the shop are reduced. They have to alter their eating wonts excessively, where they used to bask rich up to three repasts a twenty-four

hours, with some households basking several classs in a repast, they have to do make with less classs and fewer ingredients. The kids are particularly affected if they have to make with feeding from the cafeteria at school while they were used to holding money for tiffin Kalil ( 2005 ) .

As one or more of the suppliers has lost their occupation, and the circulation of money in the place has reduced with benefits reduced or cut, tensenesss get high. The household breaks up as tensenesss get high, they may be populating in the same house but they are non in speaking footings, each household treatment turns into a battle Berry ( 1997 ) . The ground is that the unemployed member of the household is insecure ; he or she does non cognize what to make with them. Their ego regard goes down, a low ego regard means that the person is on border, they become cranky, and can non interact decently with other members of the household. The household members are besides at a loss, while they may desire to help them, they may non cognize how to as they are hard to cover with.

On the other manus the deficiency of the luxuries may do members to fault the supplier for fring their beginning of income, they besides turn edgy as they become insecure, they can non cover with the fact that now they have to do make with less. The limited budget, the pick the household has to do on what is to be left out of the budget is a seeking undertaking, a homemaker who has to cut down or halt

her visits to the watering place, shopping and lunch meetings may acquire testy. The household splits up on points to be incorporated and left out of the budget Britt ( 1994 ) .

Families have been known to divide up and interrupt up when the loss of income happens, when there is no any other beginning of income in the close hereafter. The procedure of looking for another beginning of income is a difficult one, if they are emotionally beaten they may non be enthusiastic in the occupation Hunt, the move to another portion of town or metropolis may justify the interruption up of the household. The break down of communicating at this clip because of tensenesss may besides do the household to interrupt up Heidi ( 2008 ) .

The household may hold to travel to another portion of town or the state as they search for income, or as they move to a less expensive house. The failure to pay for mortgage or the repossession of their house causes them to travel, either with household, friends or they even become stateless West ( 1994 ) .

These major alterations in the household are a strain on the household members ; they cause aberrant behaviour in the household member. They lead to members turning to alcohol, excess matrimonial personal businesss and even divorce. The kids in this sort of state of affairs bend to offense as they associate with the incorrect group, in their hunt for felicity outside the house they make incorrect determinations. Unemployment besides causes depression to unemployed and the members of the household, their failure to procure another occupation, the changeless tenseness in the

household, cause depression Kalil ( 2005 ) . Where depression is experienced and if it is non treated early it can take to suicide, sometimes the household members would desire to assist but the deficiency of money agencies that they can non afford professional aid for their loved 1. The household seeks ways of burying the shame of a alteration life style and header with their new state of affairs. It is the hunt of ways that causes them to act in socially unacceptable mode.

During this unemployment period there are patterns that households get into to cut down and to pull off the effects of unemployment. These can be classified as direct and indirect patterns. The direct patterns are the immediate actions that consequence, for illustration a household will make up one's mind to instantly alter their budget, and they decide to unjust their budget to suit their new life style. They besides decide to alter the bill of fare to be a more economical ; they may turn to canned nutrients Trotter ( 2002 ) . The household besides decides to cut down ingestion of energy in the house, by cutting down on shower clip, halt the usage of bathing tub, alteration illuming bulbs t the more energy salvaging bulbs, make us of one auto if they have two. They besides may make up one's mind to halt the usage of the pool for those who have it, to cut back on cost of keeping it. Family holidaies are besides reviewed, with precedence being put on sing household members and parents. At the same clip they besides can cut back recognition card disbursement, or

even wholly trash the usage of the cards.The whole intent of doing these alterations is to efficaciously do usage of their nest eggs before the following beginning of income is found Heidi ( 2008 ) .

The other measure taken is the immediate hunt for an alternate beginning of income, this may imply looking for employment through advertizements or they use friends and relations to acquire another occupation. They may make up one's mind to acquire self employment to seek income. When a household has settled in their new life styles are they able to manage unemployment. If the job persists do they ensue to drastic steps, merchandising of family points, the 2nd or all the autos, they may make up one's mind to travel in with their relations as they sell the house. They may travel to a house with cheaper rent.

At this despairing phase is when the forbearance of the household is tried, at this clip many twosomes are known to interrupt up. Children drop out of school because they lack fee or are chased off for misconduct. This is period were unfaithfulness is experienced ; this period besides can take to disassociate. It is this clip when tensenesss are high and the household is braking up, that despair leads adult females to prostitution, work forces to offense, self-destruction is experienced and household members are known to kill each other.

Solutions to Unemployment in the Family

To efficaciously cover with unemployment in the household it is of import first to larn the direction of the household 's resources. There are many stairss the household can take to cover with period. The first measure to take instantly

after a occupation loss is stock taking or measuring the state of affairs. This is meant to name down all the outgos and the resources present it helps give one a clear image of the fiscal place of the household.

The 2nd of import measure is the application of benefits ; those who are unemployed are eligible to unemployment benefits. After measuring 1s place financially, they should use for unemployment benefits. These benefits will help the household in delivery in some income, this largely helpful as it helps with the basic and most pressing demands like nutrient and public-service corporations. Application for benefits early will assist them have them early excessively, and at this clip they will hold come to footings with the loss of income Barling ( 1990 ) .

A really of import measure is the contacting of creditors ; this is meat to inform them of the loss of income and the possibility of delayed payments. This is of import because creditors are willing to unjust the payment agenda or payments for those who can pay. This measure is of import because failure to make, and the over looking the fact that you might do it, in the contingency that 1 does n't, so he or she destroys their recognition evaluation.

During this period it is of import to look for a occupation. As one embarks on a occupation Hunt it is of import to analyze the occupation market. Job markets and demands by employers change, this is because there are so many diverse demands that an employer is looking for a multi skilled employee. It is of import at this clip to revise 1s

accomplishments and seek to fit them to the occupation market. This is the clip to travel back to school or get preparation certification that will fit with your work experience Cantor ( 1985 ) .

As they search for a occupation it is besides advisable if a occupation is long in approaching by, it is good for them to reconsider and believe of a self employment venture to acquire involved in. they can either fall in a comparative or a friend and aid in their work, this is really of import in that it gives them a sense a being needed. Apart from experiencing needed it besides boosts their assurance, reduces emphasis, depression in them and in the household. It gives them something to make and busy their heads with ; it is while they are out working on uneven occupations that they get thoughts of acquiring an income. They so should confer with with household members on their thoughts and professionals so that they do non do a hapless investing determination Britt ( 1994 ) .

These stairss are of import to the person and the household members as they help forestall negative effects as a consequence of weakness or depression. A positive reaction and positive stairss taken in the direction unemployment helps them cut down medical costs that would hold been sort if they fell into depression. Geting involved in community undertakings and activities besides helps in busying their clip, acquiring involved in the church, or the local attention Centre, the diversion Centre, as a voluntary or the local horticulture commission Kalil ( 2005 ) . These gestures are meant to give them a sense

of ownership, that the society still needs them and the relief of ennui.

A positive head during the period of unemployment is a healthy tool in the battle of unemployment. A positive head is created from the feeling we have when we get support from our household and friends, when our neighbours still want to tie in with usage after a loss Berry ( 1997 ) . A positive is required in order for the unemployed to happen another beginning of income.

This new beginning of income apart from a new occupation could be a concern, a positive head will assist them believe and do good programs that assist them in determination devising. They should seek the aid of household members whether it is fiscal assistance or thoughts, to even labour as they set up their concern. These simple yet of import stairss should be undertaken by the unemployed and their households. It is of import fro them to take personal duty for their present state of affairs, whether they are in it out of their ain mistake or that of others Linker ( 1983 ) . These steps should travel manus in manus with steps the authorities and local authorization is taking to relieve unemployment.

The authorities on its portion tries to relieve unemployment by bettering the economic system, they bail out organisations. They encourage investings in order to make occupations, at the same clip supplying benefits to the unemployed. They provide these benefits through societal public assistance that gives unemployment benefits, to nutrient casts. The societal constructions set up, like that of the unemployment office helps the unemployed discovery occupations. All steps taken by the authorities

are meant to assist salvage the society from the effects of unemployment.


This paper has covered in item the causes of unemployment, the consequence it has on the household and the actions the household takes to cover with unemployment. it has been seen that the first stairss one takes after losing a occupation determines the sort of state of affairs they will be in during this period of unemployment. Family support is really of import to the unemployed ; they either make or interrupt the person. This is the period where with a positive attitude one can alter their lives positively, the loss of a occupation may intend the get downing a o new epoch, one in which they rediscover themselves as they improve their state of affairs, a period of self find leads to self employment and even a really successful calling in a field of their dreams. The most of import factor is that of positive life and positive stairss to manage unemployment.

Work Cited

Barling, J. ( 1990 ) .A Employment, Stress, and Family Functioning.A New York: John Wiley and Sons.

Berry, A. ; Mendex, M. T. ; and Tenjo, J. ( 1997 ) . `` Growth, Macroeconomic Stability and the Generation of Productive Employment in Latin America. '' InA Employment Expansion and Macroeconomic Stability under Increasing Globalization, A erectile dysfunction. A. R. Khan and M. Muqtada. London: Macmillan.

Britt, C. L. ( 1994 ) . `` Crime and Unemployment among Youths in the United States, 1958- 1990. `` A American Journal of Economics and SociologyA 53 ( January ) :99-109.

Cantor, D. , and Land, K. C. ( 1985 ) . `` Unemployment and Crime Ratess in

the Post-World War II United States: A Theoretical and Empirical Analysis. `` A American Sociological ReviewA 50 ( June ) :317-332.

Heidi, R. Unemployment Effects emotions, Family Relations. C & A ; G publication, 2008

Kalil, A. Unemployment and Job Displacement: The Impact on Families and Chilren. Ivey concern diary 2005

Liker, J. K. , and Elder, G. H. , Jr. ( 1983 ) . `` Economic Adversity and Marital Relations in the 1930s. `` A American Sociological ReviewA 48 ( June ) :343-359.

Piggott, J. , and Chapman, B. ( 1995 ) . `` Costing the Job Compact. `` A Economic RecordA 71 ( December ) :313-328.

Trotter, L. The Impact of Unemployment on our Society. Helium publication. 2002

West, C. T. ( 1994 ) . `` The Problem of Unemployment in the United States: A Survey of 60 Old ages of National and State Policy Initiatives. `` A International Regional Science ReviewA 1 and 2 ( 16 ) :17-47.

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