Unemployment and the impacts
- Created by: bethsmith99
- Created on: 14-04-16 19:47
View mindmap
- Real Wage/ Classical
- Unemployment
- Frictional
- People who have just left a job, and trying to find another
- Uni graduates take more time to accept a job with appropriate wage rates.
- People who have just left a job, and trying to find another
- Structural
- Frictional
- Individuals+Government set such high wages, that businesses cannot afford to pay.
- Hairdressers fire employees if they are doing jobs no longer needed e.g sweeping floors.
- Unemployment
- Unemployment high, inflation low > because demand is low as less people are employed
- Not have as much money so they demand less.
- Relationship between full employment+ inflation:
- Impacts
- The unemployed individuals
- Businesses
- Less employment to provide the same level of output
- Decreases in demand, leads to a decrease in sales+profits, business may fail to grow+invest
- Redundancies, reduced stock, no more training, closure of business > bankrupcy
- Decreases in demand, leads to a decrease in sales+profits, business may fail to grow+invest
- Less employment to provide the same level of output
- The working population
- Employees feel pressured + experience strain in the workplace where there has been redundancies
- Same level of output needs to be done by fewer people
- Higher taxes, Low cheap shops e.g Poundland thrive
- Same level of output needs to be done by fewer people
- Employees feel pressured + experience strain in the workplace where there has been redundancies
- Loss of income > decline in living standards, individuals don't have money to live well.
- Loss of Confidence - may lose motivation to find a job
- Decrease skills > Crime rates increase > Strains on police > Government spending
- The unemployed individuals
- Loss of Confidence - may lose motivation to find a job
- Same level of output needs to be done by fewer people
- Higher taxes, Low cheap shops e.g Poundland thrive
Similar Economics resources:
Teacher recommended
Teacher recommended
Comments
No comments have yet been made