Unemployment

Question 1

Unemployment

Answer 1

those who are not currently working but who are available for work

Question 2

Costs of unemployment

Answer 2

Loss of income, except benefit payments which will be lower than the average weekly pay in UK of £500
Loss of skills – the longer someone remains unemployed there more skills they may lose, they will not be up to date with latest training.
Health - the unemployed are more likely to suffer from poor health e.g. mental health
Family breakdown - the unemployed are more likely to experience family problems, with higher marital breakdown rates

Question 3

Why does the duration of unemployment vary

Answer 3

(1) skills and training – more skills the more likely they will find jobs
(2) qualifications – school leavers without qualifications are more likely to be unemployed as they are less attractive to businesses
(3) Age – older people will find it harder to get jobs as they are expensive and thought to be too old to train

Question 4

Government strategies to help the unemployed

Answer 4

(1) tax allowances – allow a worker to earn up to a certain level before they start paying income tax., increasing these make sit more attractive for the unemployed to work as they pay no or less tax.
(2) Jobseekers allowance – benefits paid to the unemployed, based on evidence that the worker is seeking work.
(3) New deal – training for young unemployed workers ( under age 25)
(4) Education – vocational qualifications are encouraged and introduction of diplomas
(5) Apprenticeships – increased funding for this area, so unemployed can gain specific job related skills.