what are the impacts of unemployement in working
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Answer:
The immediate consequences of unemployment are (usually) a reduced income and an increased amount of time spent in non-labour market activities such as leisure. Consequently, the satisfaction level regarding income decreases and with respect to leisure time it increases.
Some of the effects of unemployment are immediate and obvious. When unemployment increases, both state and federal governments pay increased unemployment benefits. These are not inconsiderable. Even in February of 2017 —with the unemployment rate hovering around 5 percent —unemployment benefits that include food benefits and Medicaid totaled $2.96 billion for the month.
Even more significant in the U.S. consumer economy are the chained consequences of these increased benefits, which require the government either to borrow money to pay these benefits, and by doing so, also deferring the costs into the future or reducing spending in other areas. This is a compensatory strategy, but it can make a bad economic situation worse. An historic 1967 paper on the relationship between unemployment and economic output by Yale economist Arthur Okun, concluded that even a 1 percent increase in unemployment reduced the U.S. GDP (Gross Domestic Product) by 2 percent, which has a multiplier effect of more than 100 percent. A 2017 paper issued by the St. Louis Fed on Okun's law — as it has come to be known — noted that this ratio "holds true 50 years later."