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
Long term unemployment affects individuals, the economy, 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
