Workers who lose their job face a diversity of hardships while unemployed. But beyond the direct cost of job loss, its connected income loss, workers will tend to make less in their next job as well. Coming from unemployment, a worker is not in a good situation to select their optimal job nor to bargain for high wages once they find a job. A worker unemployed longer will be more anxious to take a bad job that comes along and have an even worse bargaining position in it. Long unemployment durations also may signal unsuccessful attempts to find employment and be an even worse signal than a relatively short unemployment curse.

When unemployment is high, people who have jobs may be more stressed and clichéd than ever. Those that have lost jobs may be feeling miserable and anxious. Though recessions end and unemployment rates will change, it takes more than high hopes to land on your feet after a spell of unemployment.