The Negative Impact Of Unemployment In Youth

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Introduction: Unemployment generally defined as the number of persons who are willing to work for the current wage rates in society but not employed currently. Unemployment reduces the long run growth potential of the economy. When the situation arises where there are more other resources for the production and no man power leads to wastage of economic resources and lost output of goods and services and this has a great impact on government expenditure directly (Clark, 2003). High unemployment causes less consumption of goods and services and less tax payments results in higher government borrowing requirements. The impact of the unemployment is seen with the individuals and household curtailing the consumption drastically to meet financial…show more content…
There is a risk of loss of talent and skills, since a great amount of university graduates are unable to find a job and put their knowledge and capabilities into producing innovation and contributing to economic growth. Furthermore, having a large share of the young workforce unemployed, not only leads to reduced productivity and gross domestic product (GDP), it also increases the economic costs for the country, since there is a need for more money to be paid out on social grants and less money coming in from taxes. High unemployment rate also pose as a threat to the safety and security of Gauteng province, youth are most likely to resort to other measures such as…show more content…
The evidence suggests that, while there are major structural challenges, there are also some promising options to pursue. Explain why you selected this problem as a team Youth unemployment is a problem within Gauteng region and it affect both personal and social status of an individual. Unemployment has been found to affect household hence increasing poverty rate as a result of no income or loss of income. It creates dependency on social grants which affect the economy. Unemployed youth may result to violence, promote gangsterism and crime which might lead to the youth being arrested. Youth unemployment increases the chances of alcohol and drug abuse to gain either financial status or to reduce boredom. Unemployed youth may be subjected to drop out from school, or unable to pursue higher education. A female youth that is unemployed and not in school is likely to get married at a young age or experience teenage
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