Unemployment has microeconomic effects as well as macroeconomic effects. the main microeconomic effects are borne by the individual and the effects may spill over to their family. Individuals may lose their income, may lose their self-esteem and become less healthy by unemployment. However if the unemployed suffer then the whole economy suffers. the macroeconomic effects of unemployment include loss of tax revenue, loss of output to the economy, loss of profits to firms and increased government expenditure of health care and welfare. These effects can also be classified as economic and social costs or direct and indirect costs of unemployment.