Question

explain any two effect of unemployment

Answer 1

The most obvious impact of unemployment is that it hurts the economy. People who are unemployed have less money to spend. ... Unemployment can impact society in ways that go beyond its economic impact. For example, unemployment can be very psychologically hard on a worker.
If there are fewer people with jobs, then they have less disposable income to spend on investments. Economists call unemploymenta lagging indicator of the economy, as the economy usually improves before the unemployment rate starts to rise again. However, unemployment causes a sort of ripple effect across the economy.
There are three main types of unemployment: cyclical, frictional and structural. Cyclical unemployment occurs because of the ups and downs of the economy over time. When the economy enters a recession, many of the jobs lost are considered cyclical unemployment.

Answer 2

Unemployment affects the unemployed individual and his family, not only with respect to income, but also with respect to health and mortality. The effects of unemployment on the economy are equally severe; a 1-percent increase inunemployment reduces the GDP by 2 percent.