5 disadvantage of unemployment
Answers
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: 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.