When unemployment is under 5 percent, some economists believe that the tight labor market and the risk of increased inflation have the potential to send the economy into recession . This indicator measures our ability to put bread on the table and our view of self-worth. The official unemployment rate has taken on great importance with public officials because they understand that it is a fundamental measure of personal well-being. They also understand that elections can be won or lost as the rate rises or falls. Economic Unemployment means financial hardship for families.
High unemployment is also a sign of economic stagnation for the state.
Those who lack jobs are less able to buy goods and services, which also detracts from the economy. Environmental Lack of a job hinders our ability to care about the environment as we become necessarily preoccupied with daily survival. People with secure jobs also pay taxes that go toward cleaning up hazardous waste sites and other environmental priorities. Social Communities with high unemployment often suffer from increased rates of crime, domestic violence, and substance abuse. Regional and ethnic disparities in unemployment rates in New Jersey may divide us as a society.