Practise Cambridge IGCSE Economics by explaining unemployment costs, interpreting effects on tax revenue and welfare spending and evaluating job-loss consequences.
The world's four largest accountancy firms experienced a decline in demand for their services at the start of 2023. One cause of this lower demand was a decline in mergers in other industries, including the chocolate industry. Three of the accountancy firms reduced the number of new workers they hired and the other accountancy firm announced job losses. The ability of workers to gain new jobs is influenced by their mobility.
Explain two disadvantages workers may experience as a result of losing their jobs.
Explain two disadvantages workers may experience as a result of losing their jobs.
Logical explanation which might include:
Loss of income (1) resulting in lower living standards / lower quality of life / poverty / inability to buy necessities / lower purchasing power / lower spending / lower consumption / lower spending on a particular good or services e.g. education/healthcare/housing/holidays (1).
Loss of skills (1) may need to gain new skills / as miss out on training / make it more difficult to get another job / lower paid job / reduced mobility of labour (1).
May be more likely to get into debt (1) harder to repay any past loans (1).
Harder to get a loan (1) banks may not expect them to be able to repay loan (1).
Loss of fringe benefits (1) example e.g. health insurance / home (1).
Less attractive to future employers / bad reputation (1) make it more difficult to get another job (1).
Mental health problems / stress / illness / divorce (1) loss of self-esteem / loss of self-confidence / making it more difficult to get another job / reduced life expectancy / due to difficulty/time to find another job (1).
May have to sell possessions (1) to gain money / to meet bills (1).
Demotivation (1) give up looking for work / become a discouraged worker / become voluntarily unemployed (1). Reduced ability to save (1) reduced ability to cope with unexpected events/ to finance e.g. education/ healthcare / retirement (1).
4
One mark each for each of two reasons identified and one mark each for each of two explanations.
If more than two reasons given, consider the first three.
Reward 'making it more difficult to get another job' only once.