 High and persistent unemployment also has a negative effect on subsequent long-run economic growth.Unemployment may seriously harm growth because it is a waste of resources, generates redistributive pressures and distortions, depreciates existing human capital and deters its accumulation, drives people to poverty, results in liquidity constraints that limit labor mobility, and because it erodes individual self-esteem and promotes social dislocation, unrest and conflict.Policies to control unemployment and reduce its inequality-associated effects can strengthen long-run growth.