The economic consequences of unemployment.

Unemployment has a negative impact on the economy in general and on the standard of living of specific people in particular. An unemployed person has no earnings, which means that he does not have the money to buy goods and services, this leads to a drop in purchasing power and demand. Due to the falling demand, many goods remain unsold, and the manufacturer cannot cover his costs, pay workers’ wages, pay taxes, rent, etc. The result is an economic downturn.