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In general, rising unemployment decreases the ability of consumers to spend money, which decreases sales at many businesses. Decreasing sales and profits will cause further unemployment, until the cycle eventually breaks. Even the threat of unemployment will cause consumers to decrease sales. A good way to break the cycle is for the government to increase the number of jobs available by spending money. Ideally, the money should be spent on projects that the government could get a good return on investments.

For insurance related companies, increasing unemployment will decrease the number of members, which decreases revenue and profits. Rising unemployment also reduces the demand for health care insurance, which is often paid for through businesses. …