Since Covid-19 pandemic hit in the year 2019/20, a lot of businesses and organization have gone on a downward spiral. This decline did not affect all businesses, in fact some businesses took a turn upwards. One major effect of this virus is unemployment, and this unemployment did not only affect individual, it also affected families.
Economic setbacks as a result of Covid-19 pandemic
Now in 2021, after the lockdown has been eased, and businesses have started re-opening, a lot of people have still not been called back to their jobs, and will most likely not be called back. A lot of businesses suffered losses they have not recovered from and probably might not recover from. It mostly starts with lower profits for businesses before it leads to budget cuts and workforce reduction. This is really nobody’s fault as each business owner is trying to do what is best for himself and his business. But what most people forget is that these sudden decisions have an adverse effect on the individual, their families and the economy at large. Below are some of the likely effects of unemployment.
Likely Effects of Unemployment
The effect of unemployment is not just the lack of cash at hand or in the account which is referred to as financial hardship. These effects can be classified into segments; relationships the individual suffers financial hardship that impacts families, relationships and the community, health- it has effect of individual’s health, that is it has the ability to cause depression, low self-esteem, loneliness and loss of self-respect amongst others, economy- it reduces consumer spending which is one of the keys for economic growth and it can lead to recession, or even depression if allowed to continue. These three factors are worthy of note when dealing with a friend or family recently unemployed or when planning to relieve a person of their job.