Consequences Of Unemployment And How To Avert It?

By Author: Vijay Koragappa Shetty
Total Articles: 2541
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You may have experienced an unemployment situation due to loss of job during recession. Imagine the amount of stress you need to face when you become redundant.

-Unable to pay your electric bills
-Pending credit card bills
-Loan amount dues start piling up
-Secured loan - threat to lose out on collateral

Loss of job hit its high in 2008 August. Roughly around 84,000 jobs were lost which shows a figure of 6.1% unemployment rate. Loss of job hit its all time high during this recession. Dependents of the family were in penury, few even went up to the extent of filing for bankruptcy. Some were unable to make their mortgage payments and had to lose out on their collateral. On losing jobs, people are forced to take up jobs that do not befit their skills, experience and educational qualification. The other major consequence of unemployment is anxiety in the minds of the unemployed people. Filing for unemployment however, is a state subject and every state has its own framework for providing unemployment benefits. Broadly speaking, people who are eligible for a particular work, who have lost their jobs ...
... through no fault of their own, and meet the criteria as laid down by their respective states can be assured of unemployment compensation.

It has affected the economy to a great extent. There has been a decline in the demand for products or services of a company. Few have faced a salary cut, some have even put in extra hours of work etc. And this may bring about an imbalance in the economy. Moreover, it has psychological effect on the one who has lost the job too. He becomes pessimistic about life and may have to face psychological problems resulting from mental stress.

Such situations can be averted, if you take an unemployment insurance cover. It helps you protect against any kind of redundancy and its after effects. You can breathe a sigh of relief, in a jobless situation. You can pay back your kids' school fees, you can meet your parent's medical expenses, you can pay off your electric, mobile and grocery bills too. Even in a crisis situation such as redundancy you can still stay calm and enjoy the dinner with your family. Such is the solace and emotional succour offered to you with a protective cover such as an unemployment insurance. Be prepared for any inevitable situation get a protective cover!

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