Singapore School Kebon Jeruk Senior Secondary Students 2013 PowerPoint Presentations Unemployment Rate Causes and Consequences

1. THE COSTS OF
UNEMPLOYMENT
Presented by: Pawee J, Christine D, Alfredo T

3. Personal Costs
 Lost of income for those affected
 Dependency on charity/ government benefits
 Lost of working skills (especially for those
unemployed for a long time and not subjected
to re-training)
 May cause depression and illnesses
 May put strain on other family members and
health-care services

4. Stories of the Unemployed
 A 25 years old Florida teacher who has a GPA of 4,0.
 Bachelors degree in Elementary education and masters
in Educational Leadership.
 Told she was over qualified.
 Has no job.
 No income to pay debts and taxes.
 No more house to live in.
 Loss everything she has achieved.
 No more family to go to.
Source from :http://www.unionofunemployed.com/stories/page/4/

5. Fiscal Costs
 Unemployment benefits may only be limited to
registered people who are seeking work and do
not currently have a job
 These benefits only cover for food & other
necessities for a limited time
 Employed people must pay higher taxes to
sustain the unemployed
 Public expenditure is spent for the unemployed
rather than for health care, schools, etc.
 Living standards may fall

6. Economic Costs
 The higher the unemployment rate, the lower the output
produced
 This will result in lower GDP which can cause lower
living standards and eventually, an economic recession

7. Economic Costs
 Opportunity Cost – measures the benefit you
could have had from the next best alternative
you have gone without
Higher rates of
people unemployed
OPPORTUNITY COST:
The goods and services they
could have produced
Tax revenue used
for Unemployment
Benefits
OPPORTUNITY COST:
•Tax revenue spent on other
beneficial projects in
economy
•Higher disposable income
for workers