Let’s start my presentation with a story. A’s college days are almost over, but he still has no idea about what job he wants to do. The 22-year-old boy is worried about his job prospects despite being one of the top students at the capital based HN University. A and about 1 million others who enter the labor market every year, are likely to face unemployment. It is not a problem that has recently hit the economy, rather it was largely evident since the 16th century. Despite coming from a good educational background and being eligible for jobs, some people still remain unemployed. Why does this happen? Here we are discussing causes and effects of this problem.
The definition of unemployment as explained in the dictionary of economics is the state of an individual looking for a paying job but not having one. Considering the unpredictable nature of the economy, unemployment is something we may have to face at any point of time in our careers.
Unemployment stems from many factors.
Unemployment results from insufficient effective demand for goods and services in an economy. If the demand for a particular good or service falls, companies produce less. This causes a decrease in the demand for workforce, leading to unemployment. In this case, a company may reduce its employees or file for bankruptcy. This is known as demand deficient unemployment.
In other words, when businesses experience a growth in demand for their products, they need workforce. This brings in a period of increased employment. When businesses experience a decline in demand, their need for workers reduces. This leads to unemployment.
The second cause is the large number of technological advancements. It is very needless to say that today we live in an age of technology. Previously companies required a lot of labor in order to perform tasks for them. However, nowadays, computers and various other machines can perform even the most complex of tasks in a matter of minutes. For this reason, so many people are  no longer required to do tasks which required manual labor and intellectual ability.
Another reason is that jobs have become increasingly specialized. Big companies provide their employees with a large number of benefits and facilities. It is for this reason that when looking for employees, they have a large number of specifications. Unless a person fulfills all the requirements, he will not even be considered for the position at hand. Since job descriptions have become very specific and particular, people are finding it very difficult to even get an interview. At such a point in time there is little which can be done, because companies will not be willing to take on board those who are not exactly perfect for the job.
Unemployment occurs due to a higher literacy rate among men and women. Till a few years ago, the literacy rate the world over was not very high at all. However nowadays more and more people from even the rural regions are coming forward in order to receive an education. In addition to this even women are being encouraged to come forward and study so that their future is bright and promising. It is very sad indeed that because so many people are educated, the number of jobs are falling short and that is why there is so much of unemployment especially in big cities.
Unemployment is a very serious concern because it not only affects the breadwinner but also the entire family as well as the economy and society.
As for the individuals
They have to go through an economic crunch. They are unable to meet their financial obligations. This may lead to a decline in their standard of living. It can be as grave as homelessness due to failure to repay home loans or pay house rents.
The other consequence of unemployment is increased levels of anxiety and stress in the jobless. The inability to get a job gives them a feeling of failure, leading to low self-esteem. They may lose interest in living and even have suicidal thoughts.
The responsibility of their families (children's education, medical expenses of family members, etc.) burdens them further, leading to increased levels of frustration. Joblessness may lead to depression and other psychological problems.
 Effects of unemployment are not limited to the individual. Even families of the unemployed have to suffer because of the reduced spending capacity and inability to meet financial obligations. Due to less money, the family may not be able to afford even the necessary expenses, such as those to be made on food, health, and education.
Money is very important to keep things going on smoothly. With less or no money in hand, the head of the family is under continuous stress, which disturbs the emotional and physical health of everyone. The relations between all family members also come under a lot of strain. There is never any peace or happiness around the house. 
The future of children in a family with unemployed parents might seem gloomy. Poor financial capacity of parents lead to compromising on good education of their children. Due to inadequate education, fewer companies open their doors for hiring them, and this ultimately affects their social futures. The emotional well-being of children is also hampered due to constant stress and conflicts between their parents and other family members.
Unemployment affects the economy of a region very negatively. Once people are unemployed the government of a country becomes responsible for providing the people with amenities and facilities which they cannot afford. So when many people are unemployed it automatically results in recession.
Unemployment leads to less affordability. The decrease in the spending capacity of people has a negative effect on the economy. People buy less and invest less. If this continues for long, it may cause an economic decline.
Of all the negative effects of unemployment, one of the worst effects is that it leads to an increase in crime. When the breadwinners are unable to earn money, they have to resort to crime and illegal activities to feed their family members. It is often said that desperate times call for desperate measures and it seems right for the unemployed in certain situations.

In conclusion, unemployment is a serious problem and there is still a long way to go before all people have a decent job.