Why is unemployment a problem for the federal debt? When people lose their jobs, the whole nation is affected (families are affected). Workers lose income and the country loses production and consumer spending. The unemployment rate is a key way to measure the state of the economy. And what influences the economy affects the federal debt. One cause of unemployment includes rising cost lead to financial problems.
The federal debt is the net accumulation of the federal government's annual budget deficits (is the total amount of money that the U.S. government owes to its creditors).