The most salient effects of unemployment in the United States include increased foreclosures, increased bankruptcies, and increased homelessness. High unemployment rates also create a greater demand for government entitlements such as unemployment benefits, health care and welfare. When unemployment is high, home values tend to drop.

Even though the government receives less tax revenues during times of high unemployment, one of the main effects of unemployment is that the government usually has to increase spending even if it means incurring huge deficits.

Psychological effects of unemployment include low self-esteem and increased stress. Unemployment causes many people to experience struggles with self-confidence. Unemployment may also cause physical effects.

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