Unemployment refers to people who are available and willing to work but do not have paid employment. There are several causes of unemployment including recessions which lead to companies downsizing or moving abroad, reduced demand for goods and services due to cheaper imports or a fall in demand for Irish products, low wages providing little incentive for long-term unemployed to return to work, and seasonal variations in industries like agriculture, tourism, and construction. Unemployment has negative effects on individuals, families, and society as a whole such as financial insecurity, loss of status, health problems, poverty, strained relationships, children suffering emotionally, increased anti-social behavior, higher costs for the state, rural population decline, and intergenerational unemployment

1. UNEMPLOYMENTUNEMPLOYMENT
People who are available for and willing
to work but do not have paid
employment.
© PDST Home Economics

2. Causes of Unemployment

3. 1. RECESSION:1. RECESSION:
 Companies moving abroad.
 Downsizing.

4. 2. REDUCED DEMAND FOR2. REDUCED DEMAND FOR
GOODS AND SERVICESGOODS AND SERVICES
 Cheaper imported products.
 Fall off in demand for Irish goods.
 Closure of indigenous firms.

5. 3. LOW WAGES3. LOW WAGES
 Little incentive for long term unemployed to
return to work.
 Loss of benefits e.g. rent supplement, and a drop
in income.

6. 4. AUTOMATION AND NEW4. AUTOMATION AND NEW
TECHNOLOGIESTECHNOLOGIES
 Fewer workers needed to run more technologically
advanced companies.
 Technical difficulty adapting to changing
requirements of industry.
 Unskilled workers made redundant.

7. 5. SEASONAL VARIATION5. SEASONAL VARIATION
 Some employment is seasonal.
 Agriculture, tourism and construction.
 Off-season workers are laid off.
 Students return to full-time education.

8. EFFECTS OF UNEMPLOYMENT
ON THE INDIVIDUAL

9. 1. Loss of Income1. Loss of Income
• Financial insecurity.
• Stress / Worry about bills.
• Fear of poverty.

10. 2.Loss of Status2.Loss of Status
• Erodes self-esteem.
• Decline in self-confidence.

11. 3. Loss of Social Contact3. Loss of Social Contact
• Social isolation.
• Social life and leisure restricted by limited
finance.

12. 4. Sense of Guilt4. Sense of Guilt
• Failed themselves.
• Let down their family.

13. 5. Health Problems5. Health Problems
• Depression
• Anxiety
• Stress
• Alcohol abuse

14. EFFECTS OF UNEMPLOYMENT
ON THE FAMILY

15. 1. Decline in Living Standards1. Decline in Living Standards
• Repossession of car.
• No foreign holidays / leisure activities.
• Loss of family home.

16. 2. Poverty2. Poverty
• Common among unemployed families.
• Affects nutrition, schooling leading to educational
disadvantage.
• Insecurity

17. 3. Strained Relationships3. Strained Relationships
• Tension
• Possibly violence in the home.
• Marital breakdown.

18. 4. Children may Suffer4. Children may Suffer
Emotionally and PsychologicallyEmotionally and Psychologically
• Strain on relationships between parents and
children.
• Bored breadwinner creating tension.
• Worry about the future can result in ill health.

19. 5. Can Shape Children’s Views5. Can Shape Children’s Views
of Employment/Unemploymentof Employment/Unemployment
• Parents are role models for children.
• Children of long term unemployed may fall into
poverty trap.

20. EFFECTS OF UNEMPLOYMENT
ON SOCIETY

21. 1. Increase in Anti-Social1. Increase in Anti-Social
BehaviourBehaviour
• Boredom can lead to drug or alcohol abuse,
vandalism, and crime.
• Areas develop bad reputations and become
unemployment black spots.

22. 2. Cost to the State2. Cost to the State
• Unemployed people are financially dependent on
social welfare for their income.
• Loss of income tax for the government.

23. 3. Decline in Population in3. Decline in Population in
Rural AreasRural Areas
• People forced to leave an area in search of
employment.
• This has a negative impact on other business and
services leading to further unemployment.

24. 4. Children of Unemployed4. Children of Unemployed
Parents are More Likely to beParents are More Likely to be
Unemployed ThemselvesUnemployed Themselves
• Where long-term unemployment is accepted as the
norm children lack a positive work ethic and a
pattern of unemployment develops over
generations.

25. 5. Increased Growth of the5. Increased Growth of the
“Black Economy”“Black Economy”
• Loss of tax revenue for the government as
unemployed people receive cash for work done
while unemployed.