Economy, asked by naeemofficial1323, 1 year ago

Advantages and disadvantages of unemployment in india

Answers

Answered by bondesrushti
8


Unemployment

Advantages

Low wage rates - Reduced power of workers to bargain for    higher wages/salariesReduce inflationary pressureReduced environmental damage

Disadvantages

Waste of resources/opportunity cost of lost potential output (PPF)Less economic growthRedundancies 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 unemploymentWorsens Government finance - Increased benefits i.e. JSA and decreased income tax, national insurance & VAT revenue = budget DEFICIT.Higher crame rates, divorce rates, poorer health & lower life expectancyFalling real incomes -> widening income inequality gapFinancial worries -> mental health issues, breakdown of relationships & even suicide.
Answered by ShaikHamood
1

Answer:

Explanation:

Advantages

Low wage rates - Reduced power of workers to bargain for    higher wages/salariesReduce inflationary pressureReduced environmental damage

Disadvantages

Waste of resources/opportunity cost of lost potential output (PPF)Less economic growthRedundancies 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 unemploymentWorsens Government finance - Increased benefits i.e. JSA and decreased income tax, national insurance & VAT revenue = budget DEFICIT.Higher crame rates, divorce rates, poorer health & lower life expectancyFalling real incomes -> widening income inequality gapFinancial worries -> mental health issues, breakdown of relationships & even suicide.

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