Unemployment is negative for the government because it costs them to provide unemployment benefits and to deal with the social problems that result from unemployment. Also, there is a loss of income for unemployed workers, also resulting in decreased government tax revenue because consumers will not have as large of an income tax to pay. Furthermore, there will a loss of real output as there is not full employment of resources. There are also non-economic costs of unemployment which included: greater psychological stress, increased personal problems, and increased social problems such as crime and
Unemployment is negative for the government because it costs them to provide unemployment benefits and to deal with the social problems that result from unemployment. Also, there is a loss of income for unemployed workers, also resulting in decreased government tax revenue because consumers will not have as large of an income tax to pay. Furthermore, there will a loss of real output as there is not full employment of resources. There are also non-economic costs of unemployment which included: greater psychological stress, increased personal problems, and increased social problems such as crime and