How does an increase in unemployment negatively affect your government?

Answer 1

Increased applications for unemployment benefits directly reflect the loss in the number of jobs available to workers. The actual cost of paying unemployment benefits to the unemployed, is actually very small compared with other government spending. Paying unemployment benefits to those who need it, actually benefits the country's economy, because it prevents jobless individuals and their families, to overwhelm other government programs such as welfare. Paying unemployment benefits also prevents individuals to fall into poverty-related social problems, which would result in higher costs to deal with their consequences and to bring individuals back to join the work force, which at the end, is what keeps the economy rolling and growing.

Answer 2

If the unemployment rate increases it mean less people have jobs, which means lower income. If people have lower income they wouldn't have to pay as much tax, this means the government might not receive as much money from taxes as it wants.

Answer 3

The impact of higher rate of unemployment of a country is immense. It becomes the primary duty of the country to reduce the unemployment rate to a controllable level as generation of employment through creation of more industries is a positive indicator of economic growth of the country.The US economy under President Obama is reviving have been able to reduce the unemployment rate, by generating more enemployment.

Answer 4

with the increase in unemployment people will be more inclined to turn to a life of crime thereby decreasing the economic growth

Answer 5

Yes it will slow economic growth. People who are unemployed do not have the funds to purchase more than the essentials to sustain their existence or purchase luxury items.

Answer 6

the situation when people especially in the age group 15-59 years are unable to find gainful employment is called unemployment.