What are the disadvantages of unemployment explain?

Unemployment has severe disadvantages on multiple levels. For the individual, the most immediate is the loss of income. This creates immense financial hardship and lowers the standard of living. Beyond money, it causes significant mental stress, anxiety, and a loss of self-worth. Over time, a person's skills can become outdated, making it even more difficult to re-enter the workforce.

On a national scale, high unemployment is a disaster. It means the country is producing less than its potential, leading to a lower GDP. The government also suffers. It collects less in taxes while having to spend more on welfare and support schemes. This dual pressure creates a major strain on the nation's economy and can lead to social unrest.