Unemployment

Question 1

Impact of unemployment on financial (1- definition) (2- explanation) and social aspects( 4*2) of people’s lives

Answer 1

*Boredom and lack of motivation: Many people say the days become long and they find it difficult
to think of a reason to get out of bed.

*Personal debt increases: Personal debt is the money we owe to others, such as bank loans,
accounts with furniture or clothing stores. Increased personal debt can be directly linked to unemployment and can, in fact, prevent people from finding work. The spiral of debt affects one’s health, relationships and social life and it can also seriously affect an unemployed individual’s ability to rebuild their life by finding work.

• Loneliness and isolation: Humans are social beings! The chance of contact with others decreases when you aren’t working.
• Drug, tobacco and alcohol use: There is a link between unemployment and increased drug, tobacco and alcohol use.
• Increased violence and abuse: In families where there are money problems, the chances of domestic violence and abuse are increased.

Question 2

Explain way to counteract unemployment(2)

Answer 2

Entrepreneurship
(An entrepreneur makes something happen from nothing. He or she is a person who takes an idea or an opportunity, accepts financial risks and turns that idea or opportunity into a profitable enterprise.

Question 3

Reasons for unemployment(5*2)

Answer 3

*Economic conditions : inflation and recession can lead to fewer jobs because companies cannot afford to employ too many people
*Changes in technology: Machines now do the work that people used to do
*Unskilled workforce: in terms of education and training many people do not have the right qualifications to apply for jobs
*location of work opportunities : large sections of South African population live far away from towns or cities where more jobs are available
*international trade : can lead to job losses bc imports are sold in shops more cheaply than goods made locally


Question 4

Impact of unemployment on individual(2) and families(2)

Answer 4

Loss of income , inability to pay for basic necessities ( food, housing , education,medical expenses) .•. Causing strain and lead to problems In the home

Employment provides satisfaction * and income and financial security and support and hope and fulfillment
Unemployment makes people frustrated and depressed

Question 5

Economic impact of unemployment

Answer 5

• less disposable income to spend therefore having an affect on the economy as unemployed people cut back on their expenses and stop going to places such as restaurants. These shops lose customers and may have to close down therefore the cycle of unemployment develops

Question 6

Social Impact of unemployment(5)

Answer 6

Homelessness or overcrowding
Deterioration of living conditions and neighbourhoods
Increased use of drugs and alcohol
 violence and domestic abuse
Rise in crime

Question 7

Innovative ways to counteract unemployment and definition of viability

Answer 7

Viability is the ability to grow and develop

* volunteering: this is unpaid work that provides a service to the community (examples include community work working in the environment and helping children at schools and people in their homes)

• Part-time jobs : employment for only a few hours per week example looking after children after school
• Community work: work by members of the community for the benefit of the community it is usually unpaid and people volunteer their time for the public benefit (example a project clean up ,painting a school or an orphanage)
• entrepreneurship : businesses that people start by themselves example baking cakes to sell to other people
• informal jobs: Help unemployed people by providing some means of income to pay for living expenses example occasional gardening or cleaning jobs

Question 8

Financial and social viability of Entrepreneurship and other employment options

Answer 8

 Financial viability of the business is the ability of a business to survive for many years and make profits

Financial viability of a person is the ability of that person to earn enough money to pay their accounts

Social viability is the sense of dignity that employment gives a person and satisfaction of working for oneself and also being able to provide others with jobs

Question 9

Characteristics of an entrepreneur (4)

Answer 9

Characteristics of an entrepreneur include:
 a desire to take responsibility
 a preference for taking moderate risk
 confidence in their ability to succeed
 good organizing skills
 creativity
 an ability and willingness to make decisions easily
 considerable persistence.