Advantages and disadvantages of unemployment in india
Answers
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.
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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