The “opportunity cost of unemployment”, which represents the social cost, is the value of the goods and services that the person is capable of producing. However, as long as the person is unemployed, this opportunity cost is zero and is called “lost production.” Each “lost production” lowers the standard of living of society as a whole, highlighting the negative effect of unemployment. Additionally, there is the “tax and benefit effect”. The effect occurs when the unemployed do not pay consumption and income taxes at the same level as if they were working. This results in a negative impact on government tax revenue. As unemployment increases, so does the fiscal impact, forcing the government to address individuals' social problems caused by job loss, such as drug and alcohol abuse and