Unemployment and overindebtedness: special issues of the labour market in the period of the economic crisis

Abstract

The current economic crisis is accompanied by the marked fall in consumer demand that leads to restriction of surplus production, cutting unnecessary jobs, firing of redundant employees and increasing of unemployment. Because of the unemployment many people feel lack of money to meet their everyday needs and just the loss of regular earnings leads many people to undesirable wasteful, injudicious and irresponsible indebtedness and overindebtedness. This overindebtedness in conjunction with continuing unemployment consequently negatively influences the labour market, because it usually leads to illegal employment and many other unfavourable effects. The paper analyses the obvious connection between unemployment and overindebtedness in the context of the current economic crisis, especially causes and impacts of unemployment and overindebtedness, groups of people the most endangered by unemployment and overindebtedness as well as ways of prevention and solving problems of unemployment and overindebtedness. The paper is written on the basis of available literature and authors’ knowledge and experience.