The government and thenation suffer. In many countries the government has to pay the unemployed some benefits. The greater the number of the unemployed or the LONGER they are without work the more money the government has to shell out.Therefore, the nation not only has to deal withthe lost income and decreased production but also with additional cost.Spending powerThe spending power of an unemployed person and his/her family decreases drastically and they would rather save than spend their money, which in turn affects the economy adversely.Reduced spending powerof the employedIncreased taxes and the INSECURITY about their own work may affect the spending power of the working PEOPLE as well and they too may start to spend less than before thus affecting the economy and also the society in a negativemanner.RecessionWith the increase RATES of unemployment other economy factors are significantly affected, such as: the income per person, health costs, quality of health-care, standard of LEAVING and poverty.