Question

Consequences of umeployment

Answer 1

Answer:

• The personal and social costs of unemployment include severe financial hardship and poverty, debt, homelessness and housing stress, family tensions and breakdown, boredom, alienation, shame and stigma, increased social isolation, crime, erosion of confidence and self-esteem, the atrophying of work skills and ill-health.
• Being unemployed can lead to depression, low self-esteem, anxiety and other mental health issues, especially if an individual truly wants a job but can't find employment.

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Answer 2

Answer:

Unemployment

There are a number of types of unemployment:

Structural unemployment

Structural unemployment occurs when the economy changes and industries die out

Training is needed to give the unemployed workers new skills

Cyclical unemployment

Cyclical unemployment is caused by the business cycle

Frictional unemployment

Frictional unemployment is caused when people are temporarily out of work as they are moving jobs.

Causes :

Unemployment is caused by demand and supply side factors.

On the demand side if the demand curve shifts inwards unemployment will rise.

Supply side factors such as an excess of supply of workers also means unemployment will increase

consequences

1.Loss of income: Unemployment normally results in a loss of income. The majority of the unemployed experience a decline in their living standards and are worse off out of work.

2.Loss of national output: Unemployment involves a loss of potential national output (i.e. GDP operating well below potential) and is a waste of scarce resources.

3.Fiscal costs: The government loses out because of a fall in tax revenues and higher spending on welfare payments for families with people out of work. The result can be an increase in the budget deficit which then increases the risk that the government will have to raise taxation or scale back plans for public spending on public and merit goods.

4.Social costs: Rising unemployment is linked to social deprivation. For example, there is a relationship with crime and social dislocation including increased divorce rates, worsening health and lower life expectancy. Regions that suffer from persistently high long-term unemployment see falling real incomes and a widening of inequality of income and wealth.