2.4 Understanding unemployment

Unemployment refers to those who are not currently working but are seeking work.

Costs of unemployment to the individual: Monetary costs of unemployment –No income except for benefit payments Non-monetary costs of unemployment: –Loss of skills (not up to date with latest on- the-job training, “use it or lose it” –Health (more likely to suffer form poor health, especially mental health) –Family breakdown

Why does the duration of unemployment vary? Skills and training Qualifications Age Economic state of the area

Government strategies to help the unemployed: Tax allowances (allow people to earn up to a certain level before they start paying income tax.) Jobseekers’ allowance Working tax credits New Deal (focuses on providing training for people who have been unemployed for an extended duration. Particularly concentrates on 25 + unders as they are believed to most likely be unemployed due to lack of skills) Education (vocational qualifications) Apprenticeships