Build stakeholder chains from job loss to household income and spending, firm revenue, unused resources, lower GDP and a larger government budget deficit.
Nigeria has a mixed economic system. In January 2023, Nigeria had a high unemployment rate of 33% which created a number of costs. Its high inflation rate of 22% had several effects on the country's firms. In 2022 and the start of 2023, Nigerians increased their demand for foreign currency.
Identify two costs of unemployment.
Identify two costs of unemployment.
Two from:
- loss of output / low economic growth
- loss of tax revenue / budget deficit
- high government spending on benefits
- higher government spending on measures to reduce unemployment / training the unemployed
- loss of income / poverty / low living standards
- Ioss of skills
- health problems / high government spending on healthcare
- more crime
- movement of a production point inside the PPC / not producing at full capacity.
2
If more than two costs given, consider the first three.