Unemployment is both an economic and a social problem. Unemployment is an economic problem in the sense that unemployed persons will be consumers only without being a producer.
Non utilization of human resources due to unemployment involves double cost of maintenance and loss of output. Unemployment is a social problem in the sense that it causes enormous sufferings to unemployed workers due to their reduced or nil income. Many social evils like dishonesty, immorality, drinking, gambling, robbery, etc are the outcome of unemployment. It causes social disruption in the society and the government has to incur a heavy unproductive expenditure on law and order.