Unemployment has a negative effect on the economic development of a country because:
(i) It is a wastage of human resource. It is an indicator of an underdeveloped economy.
(ii) It increases the number of dependent population and economic overload.
(iii) People cannot support their families or give proper nutrition, education and healthcare to the family. They cannot contribute anything to the national income of the country and per capita income becomes less. The period lost in unemployment creates and adverse effect on the personality of a person.