Essay on Effects Of Job Loss On The Individual

1040 Words 5 Pages
The Effects of Job Loss on the Individual
Prior to the 2007-2009 recession, unemployment rates in the United States were at or below 5.0 percent. During the recession, unemployment rates skyrocketed, jumping to as high as 10.0 percent in October of 2009, before dropping to 9.5 percent at the end of the recession (Bureau of Labor Statistics, 2012). Millions were laid off from their jobs, and struggled to find new ones. Even though the recession is officially over, its negative effects continue to linger as many still remain unemployed or underemployed.
The Situation
Your mom/dad has recently been told by the company that she/he works for that they will be downsizing. As a result, she/he is most likely to lose their job, or experience a large pay cut and reduction in benefits, yielding near minimum wage pay and no benefits.
The Side Effects of Unemployment A layoff, such as the one mentioned above, can bring upon many complications to an individual and his/her family. One of the more apparent complications that arises for most, if not all individuals undergoing layoffs is the sudden halt of income. Families that were reliant on two or more incomes would now have to start becoming more dependent on the other sources of income, whereas families that were reliant on only a single source of income would be forced to tap into their savings or even take out a loan in order to stay afloat. Not to mention, any financial obligations that a family might be under prior to the layoff…

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