The "opportunity cost of unemployment", which represents the social cost, is the value of the goods and services that the person is able to produce. However, as long as the person is unemployed, the opportunity cost is zero and is called “lost production”. Each “production loss” lowers the standard of living of society as a whole, which outlines the negative effect of unemployment. Furthermore, there is the “taxes and benefits effect”. The effect is spreading when the unemployed do not pay consumption taxes and income taxes at the same level as if they were employed. This causes the negative impact on the government's tax revenue. The more unemployment grows, the greater the fiscal impact becomes, pushing the government to address individuals' social problems caused by job loss, such as drug and alcohol abuse and