Social implications of unemployment

The worker who loses his or her job could go through some of the following experiences:
•Anger;
•Depression;
•Anxiety, stress and distress;
•Loss of self-esteem;
•Escapist and/or other self destructive behavior used as coping mechanism e.g. excessive alcohol consumption or drug abuse;
•Dysfunctional social/emotional relationships;
•Loss of self confidence;
•III-health (as a by-product of stress e.g. high blood pressure, migraine); and
•Feeling of shame, embarrassment and inadequacy.
Impact on families
The impact could be quite devastating. The main impact is a decline in the quality of life, which depends largely on family income. This includes:
•Loss of income;
•Insecurity;
•Jeopardized educational opportunities for children;
•Jeopardized access to healthcare;
•Reduced nutritional status;
•Jeopardized access to shelter;
•Increased vulnerability especially of women, children and the elderly;
•Emotional/psychological stress/trauma;
•Tension and conflicts;
•Domestic violence;
•III-health; and
•Early death.

In the United States, the number of suicide and distress calls to hotlines have reportedly increased in places like Northern Virginia, Florida and Texas.

Impact on the society
In general, the impact is felt in the form of heightened insecurity of life, property, food and employment insecurity; access to shelter, education, health care, nutrition are drastically reduced; stress increases and life span is reduced resulting in premature deaths. In a country like Nigeria, with the problem of corruption and bad governance, the level of cynicism, apathy and despondency is palpably on the increase. Many people become increasingly individualistic and exclusively preoccupied with the problem of survival and subsistence.
Response to the crisis

The response in the developed world has been the “bail-out” approach, with governments injecting staggering amounts of money into the banking and manufacturing sectors and articulating some new regulatory frameworks and so-called early-warning signs. In Nigeria, we have also seen attempts to increase the health of the banking sectors with a number of highly controversial reforms. The global response has been reactive (not proactive), aimed and mitigating the impact and achieving damage control.

Solution
There is the need for urgent improvement of social protection and empowerment of workers especially women and people in the informal sector, including unemployment benefits} insurance schemes that recognize vulnerabilities. But laudable as they are} these represent mere palliatives. To provide a lasting solution to the impact of economic crisis} there is the need to address root causes. The root cause of the crisis is greed and unbridled capitalism and reliance on reckless “market forces”.

The long-term solution is a just and more equitable socio-economic system in which the majority of the populace control the bulk of the resources and wealth of the country, a regulated economy which ensures that wealth is not concentrated in the hands of a few. In the case of Nigeria, this process should begin with the institution of real, fiscal federalism, a parliamentary system of government that decentralizes power, makes government at the centre (or federal level) very small and unattractive and therefore help to check corruption and the unbridled looting of the public treasury.

On such a foundation, a good, accountable and democratic governance could be built which will prioritise development and make it possible to stimulate growth, competition by the federating units, promote trade and industrialization, create enabling environment for job security, security of lives and property and improved quality of life.