IDEAS home Printed from
   My bibliography  Save this article

Unemployment Costs


  • Gheorghe Pîrvu

    (University of Craiova Faculty of Economics and Business Administration)

  • Adriana Totîlca

    (University of Craiova Faculty of Economics and Business Administration)


Unemployment is an imbalance of the labor market at national level - an excess of supply over demand levels and work with different evolutionary directions of countries and periods, which currently has a permanent character, but does not rule out the existence of employment status full labor. Unemployment costs, directly or indirectly, reveals that this phenomenon is a waste of human and financial resources generated by the use of an incomplete production funds, with implications for social costs. Direct costs are highlighted in the form of financial payments to the fund for social protection of unemployed, which is mainly used to pay unemployment benefits, support allowance, qualification and retraining of unemployed. Indirect costs are generated by reducing overall production and income that could benefit the entire population.

Suggested Citation

  • Gheorghe Pîrvu & Adriana Totîlca, 2011. "Unemployment Costs," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(39), pages 53-60.
  • Handle: RePEc:aio:aucsse:v:1:y:2011:i:39:p:53-60

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    direct costs; indirect costs; the social cost; unemployment; gross national product; national income;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:aucsse:v:1:y:2011:i:39:p:53-60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anca Bandoi). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.