Causes and Effects of Unemployment

In this regard, the government should pay a lot of attention to the prevention of the growth of unemployment rate because it can aggravate consistently the economic situation, while effects of unemployment may be disastrous. In fact, unemployment provokes the further decline of consumption and stimulates saving that is disastrous for the contemporary open market economy, which is oriented on consumerism. The drop of consumption provokes the economic crisis or aggravates it. Second, unemployment leads to the growing social tension because unemployed have no means for living. In such a situation, the government should provide unemployed with means for living. Otherwise, being in a desperate position, unemployed will start civil disobedience to protest against their position, they may start committing crimes to earn for living and, finally, they may just start riots and large scale rebellion to change the existing social order, where they have no means for living and are doomed to starvation. Even though the latter effect is the most extreme and the rarest one but it is the ultimate end of the growing unemployment and inability of the government to stop it.