Multiply this by millions of people collecting unemployment, each missing hundreds of hours of work, and you get a cost to taxpayers in the billions.
Unemployment insurance also extends the time a person stays off the job.
502,000 young people aged 16-24 were unemployed in April to June 2019, up 36,000 from the previous quarter and up 13,000 from the year before.
By historical standards, unemployment levels for young people are very low.
The , when unemployment in the United States reached 25 percent, is the classic example of the damage that collapses in credit can do.
Since then, most economists have agreed that cyclical fluctuations in unemployment are caused by changes in the Even leaving aside cyclical fluctuations, a large part of unemployment is due to demand factors rather than supply.
Unemployment, therefore, may not be as costly for the jobless person as previously imagined.
But as Harvard economist Martin Feldstein pointed out in the 1970s, the costs of unemployment to taxpayers are very great indeed.
The process of adjustment following shocks is long and painful, and recent research suggests that even temporary declines in demand can have permanent effects on unemployment, as workers who lose jobs are unable to sell their labor due to a loss of skills or for other reasons.
Therefore, most economists who study unemployment support an active government role in training and retraining workers and in maintaining stable demand for labor.