Th2.1: Unemployment Impacts on Firms

Question 1

There will tend to be a decrease in demand for their goods, which would lead to…

Answer 1

a fall in profit

Question 2

How does long-term unemployment affect firms?

Answer 2

it can lead to a loss of skills and reduce employability or workers, so firms have a smaller pool of people to hire from

Question 3

Why can firms take advantage and offer low wages?

Answer 3

people will take the job anyway as they know there are a lack of jobs