Frustration is in the hearts of many people due to the high rate of unemployment which is being faced during this pandemic. We have seen people lost their jobs and companies are not even financially ready to employ more people due to the losses they have already incurred during the total shutdown. As economists, we always need to recommend possible solutions to this particular issue that is affecting the well being of people globally. But the problem about recommendations this time, is the fact that the rate of unemployment is not caused by an internal factor but by an external factor which seems to be uncontrollable.

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Looking at the chart above, we are seeing how the government will allocate hugely in unemployed benefits.

Also, when the income of employees are cut down or rather not coming in anymore due to lay offs, this will possibly lead to serious financial crisis where there is already inflation ravaging the economy. If prices of goods and services increases against the value of the country's currency, how will households who have cut down on salaries and wages or unemployed at the moment consume such goods or services? That is, consumption is affected (which is low demand of goods) and once this is affected, producers will have to limit production, which will generally affect the GDP of the economy.
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Once unemployment rate continuously increase, no place is safe anymore, as people might possibly divert into criminal and illegal means of making hands meet. In my country Nigeria, where high unemployment rate has been living with us for decades, this has been one of the reasons militants, fraudsters, kidnappers and robbers have emerged in past years. Unemployment has been the excuses of most youths to choose diverse unimaginable ways of living. But now, things are different, even the ones who had secured jobs are losing it already. Oil, which is our major source of revenue, and also ranks as the highest paid sector for employees, are already losing due to no international trade for oil is happening at the moment.

This has affected and is still affecting the global economy in all aspects. But we will be dealing of three major aspect which is household, Economy and Society.

Impact on Man

.jpg) [source](www.google.com) The impact of unemployment rate on man directly creates large loopholes in ones's standard of living due to no paychecks. Savings rate will automatically drop even close to zero due to low propensity to save during the pandemic rather, consumption will be the highest priority of the unemployed. Unfortunately, they are also prone in consuming less than usual due to no inflow of income, even with government assistance, it does not cover 99% of consumption they where exposed to before the pandemic. In worst case scenario, the value of education and training will start declining as a result of lack of income to fund educational expenses and this will definitely deprive the economy of a promising tomorrow.

The Impact on the Economy

.jpg) [source](www.google.com) This will increase government spending in assisting the unemployed which denotes inefficiency in the allocation of resources. Inorder for government to replace such funds, it will end up piled up in the burden of increasing taxes of companies, which will in turn deny them from employing more people. And now, the rates are continuously hiking. Also, the loss of each unit of production of every unemployed will definitely affect the GDP of the country.

Impact on the Society

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Like I stated earlier, the employed are not even protected due to how crime rate will automatically increase. In my country Nigeria, kidnappers, fraudsters, robbers and other illicit activities constantly increase due to unemployment. This pandemic will create a whole lot of underground activities which is not added to the GDP of the country.

In conclusion, the only possible recommendation is for government to utilize the resources allocated to curb the virus. When this is highly utilize, then government can allocate resources in other sectors for the economy growth of the country. When all sectors began to improve in its revenue, unemployment rate will reduce because demand of labor will surely increase.

Thanks for the read fam :-)