list out two consequences of unemployment
Answers
Answer:
Normally, the longer an individual is unemployed, the more difficult it is to find work. Similarly, a large number of unemployed people cause more social problems than a small number.
Unemployment has individual consequences. Some of those who are unemployed may seek a career change, while others may enjoy their additional leisure time! However, for the majority, there will be a fall in disposable income, since unemployment-related benefits seldom pay as much as salaried employment. Living standards will fall and some of the unemployed might be forced to over-use credit and loan-financed purchases. The longer they remain unemployed, the less training and development they are receiving and the more unemployable they become.
For businesses, unemployment means lower demand for some products and employee morale may suffer. Productivity could fall, as workers fear that they are next for the unemployment pile. However, a larger pool of unemployed will exist, so some employers might find hiring new labour easier (and perhaps cheaper).
The economy might also suffer as output falls (and therefore tax revenue falls) and government expenditure on benefits increases. Opportunity cost decisions will have to be made. The distribution of income will become more uneven, and unemployment might cause downward pressure on wage levels, as workers fear pricing themselves out of a job.
In summary,when unemployment exists, it means lost output, as the economy will be working below full potential and tax revenues will be lower. As unemployment rates increase more state benefits have to be paid, which involves a further economic opportunity cost. We have also noted the potential for social difficulties.
Explanation:
Explanation:
Individuals may become dispirited by unemployment and lose their self-esteem and confidence. This may affect their motivation to work. ... Areas of high unemployment and social deprivation may also experience higher crime levels, suicide rates and psychological problems.