Outline ONE social cost and ONE economic cost of unemployment
Question
Outline ONE social cost and ONE economic cost of unemployment
Solution
Social Cost of Unemployment:
- Increased Crime Rates: Unemployment can lead to frustration, hopelessness and depression. This can result in an increase in crime rates as unemployed individuals may resort to illegal activities to support themselves or their families. This not only affects the safety and security of society but also increases the cost of law enforcement and judicial proceedings.
Economic Cost of Unemployment:
- Loss of GDP: When people are unemployed, they are not contributing to the production of goods and services, which leads to a decrease in the Gross Domestic Product (GDP). This means the economy is not utilizing its resources efficiently. Additionally, the government will have to spend more on unemployment benefits, which could lead to higher taxes or increased national debt.
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