1. Struggling PPF(Production Possibility Frontier): It specifies the various production possibilities of two commodities assuming the state of technology to be constant. However, with an increase in Unemployment, Level of Productions get contracted which directly affects the GDP of a nation.

2. Reduced Tax Collection: With a high level of Unemployment, the nation suffers from the budget deficit. There can be a massive drop in tax revenue and national welfare which can force the govt. to take loans from foreign countries leading to high debt to GDP ratio.

3. Decline in Real Income of People: When people face an unemployment tenure or see dark days to come then they try to save more money than consuming, living standards of people get affected through conservative spending. Thus, Lower consumption rates can lead to an unfavourable economic state of affairs.

4. Labour Supply drain: People with unemployment cannot resist a long period of time with stress & family burdens. Thus, they plan to migrate to a more stable nation for job or business which can be a possible decline in labour supply. The economy may lose potential manpower.

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