Loss of output to the economy - the unemployed could be producing goods and services and if they are not, then GDP is lower than it could be -this is the opportunity cost of unemployment
Loss of tax revenue - unemployed people are not earning and not paying tax. The government has reduced revenues to spend on public services
lastly, Loss of profits - with higher employment firms are likely to sell more and make higher profits. If they make less profit because of unemployment, they may have less funds to invest
