Please enable JavaScript.
Coggle requires JavaScript to display documents.
COST OF UNEMPLOYMENT - Coggle Diagram
COST OF UNEMPLOYMENT
Households
Loss of income
Loss of self-esteem
Deskilling when people are out of work for a long period of time
More difficult to get a job when unemployed
Governments
Loss of tax revenue
Payments of benefits (job seekers allowance or housing benefits)
Social problems (increased crime)
Cost of providing assistance to find a job
Economy
Loss of output
Wasted resources (inefficient)
Working within the production possibility frontier and below the level of full employment
Negative output gap
Firms
Local business in an area of high unemployment might go out of business
Areas can become run down (affect the prestige of businesses located there)
Long-term unemployment reduces the pool of skilled workers