Unemployment Effects Effects of Unemployment Unemployment Effect on Economy Effect of Unemploymen
High unemployment rates in an economy affect even those who are employed in ways that are not readily observed. This is because high unemployment is a reflection of the overall economy that greatly affects the job market.
Higher Risks of Losing your Job
Since there are so many unemployed workers looking for work, those with jobs will find that they are easily replaced if they give cause for getting fired. This is because the labor supply is high, but the number of available jobs is low. In cases where unemployment rates are high because of a depressed economy and not because they are not getting hired because of poor qualifications, job security for those already employed become extremely precarious. With younger, well qualified workers eyeing their jobs, nobody is safe.
Not Getting a Salary Raise
Average wages will also go down because there are more people willing to work for less in an economy with high unemployment. There are just too few jobs and everybody has to make a living. So more qualified people will be willing to work for less. From the point of view of a business, this means that they will also pay less for work to save on expenses and increase their profits.
Increase in Outsourcing and Contractual Work
Even if you are in no danger of loosing your job, getting steady, lifetime employment has become a thing of the past. High unemployment means that there are more workers willing to work part time without benefits or job security rather than have no job at all. Companies, businesses, and other employers would rather hire contractual workers that give no obligation for having to pay for benefits, insurance and other add on expenses. They hire as needed.
You Will Need a Side Job
Because salaries are not going up, but your daily expense will with inflation, many soon find themselves looking for side jobs to supplement their income. Those in households where one partner used to be able to afford to stay at home will also need to find a part time job to supplement the household income. Many adults previously not participating in the job market will re-enter the work force, adding to an already very competitive job market. Stay at home moms, young adults still in school, and the retired will be rejoining the workforce, if only part time.
Travel for Work
In economies with high unemployment, it usually means that there are few jobs in that area and the situation will remain so for many years. So the only alternative to finding or keeping an existing job would be to move out and find greener pastures elsewhere.
