IGCSEEconomicsCambridge (CIE)Revision Notes4. Government & the Macroeconomy4.7 Employment & UnemploymentConsequences of Unemployment

Syllabus Edition

First teaching 2018

Last exams 2026

Consequences of Unemployment (Cambridge (CIE) IGCSE Economics): Revision Note

Exam code: 0455 & 0987

Steve Vorster

Written by: Steve Vorster

Reviewed by: Jenna Quinn

Updated on

Consequences of Unemployment

  • The effects of unemployment, especially long-term unemployment, are extremely damaging

    • There are impacts on the individual, the economy, the government, and firms

Flowchart titled "Effects of Unemployment," showing impacts on individuals, firms, government, and the economy including increased spending on benefits, health issues, and more.
Long term unemployment affects individuals, the economy, government, and firms

  • Government's receive less tax revenue & have higher expenditure in the form of welfare payments

  • Individuals suffer significant emotional, relational & financial consequences

  • Firms may find it harder to find workers to employ (as they have moved on) once the economy starts to recover

  • The economy contracts as there is a higher level of inefficient use of available resources

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    Author
    Reviewer
    Steve Vorster

    Author: Steve Vorster

    Expertise: Economics & Business Subject Lead

    Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.

    Jenna Quinn

    Reviewer: Jenna Quinn

    Expertise: Head of Humanities & Social Science

    Jenna studied at Cardiff University before training to become a science teacher at the University of Bath specialising in Biology (although she loves teaching all three sciences at GCSE level!). Teaching is her passion, and with 10 years experience teaching across a wide range of specifications – from GCSE and A Level Biology in the UK to IGCSE and IB Biology internationally – she knows what is required to pass those Biology exams.