What are the personal, economic and social consequences of
![](/static/compass_v2/shared-icons/check-mark.png)
Let us discuss certain concepts related to unemployment:
Labor force: In an economy, labor force refers to the part of the working age population (aged 15-69) that is willing and able to work. It is the sum of employed and unemployed people.
Employed: Those people who belong to the labor force and are working belong to the employed category.
Unemployed: This includes the people who are willing and able to work but do not possess job.
Unemployment: Unemployment refers to the situation where people in the working age population (aged 16-59) are willing and able to work but cannot find work.
Unemployment rate: It is the number of people unemployed as a percentage of labor force. It is calculated using the formula below:
![Economics homework question answer, Step 1, Image 1](https://content.bartleby.com/qna-images/answer/907c56e6-1129-4c5c-8b2c-9f1c3d987e99/7cbcf170-34f6-4a07-9c1c-bded235c42cc/uo69qk.png)
Unemployment rate is a misery for an economy. There are several personal, social and economic costs associated with persistent, long-term and high unemployment rate. Some of them are listed below:
Personal consequences of unemployment:
- Financial Stress
- Homelessness
- Social isolation
- Issues and problems with partners
- Mental and psychological stress
- Alienation of teenagers due to complexes
- Family breakdown
- Indebtedness
- Generations of poverty due to poverty trap
- Behavioral issues with children
- Social stigma related to economic status
- Continuous decline in living standards
- Health issues due to lack of healthcare affordability
- Decreased confidence levels, etc.
Step by step
Solved in 4 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
![Macroeconomics](https://www.bartleby.com/isbn_cover_images/9781337617390/9781337617390_smallCoverImage.gif)
![Economics Today and Tomorrow, Student Edition](https://www.bartleby.com/isbn_cover_images/9780078747663/9780078747663_smallCoverImage.gif)
![MACROECONOMICS](https://www.bartleby.com/isbn_cover_images/9781337794985/9781337794985_smallCoverImage.gif)