Question

5 disadvantage of unemployment

Answer 1

Answer:

Explanation:

Waste of resources/opportunity cost of lost potential output (PPF)

Less economic growth

Redundancies waste resources invested in training & education.

Hysteresis effect - Longer the person is out of work, greater the loss of skills/motivation -> less incentive to find a work, become reliant on state welfare -> rise in structural employment and natural rate of unemployment

Worsens Government finance - Increased benefits i.e. JSA and decreased income tax, national insurance & VAT revenue = budget DEFICIT.

Answer 2

Answer: Disadvantages of unemployment-

Explanation:

1. Less economic growth.

2. It also leads to wastage of manpower resource.

3. People who are an asset for the economy turns into a liability.

4. People do not have enough money to support their family.

5. There is feeling of hopelessness and despair among the youth.