Consequences of Unemployment (Cambridge (CIE) O Level Economics)

Consequences of Unemployment

• The effects of unemployment, especially long-term unemployment, are extremely damaging

  • There are impacts on the individual, the economy, the government, and firms

• Government's receive less tax revenue & have higher expenditure in the form of welfare payments

• Individuals suffer significant emotional, relational & financial consequences

• Firms may find it harder to find workers to employ (as they have moved on) once the economy starts to recover

• The economy contracts as there is a higher level of inefficient use of available resources