Answer to Question #108368 in Economics for Brightchrist Mmari

Question

Redundacy is one of the cosequence of current economic change in tanzania economy briefly explaon the 5 impact of this situation

Answer 1

Redundancy: It is the termination of employees’ engagement by an employer due to various reasons such as unfavorable economic conditions. Redundancy can either be voluntary or forced. Redundancy can have the following effects on an employee.

Social impact – Loss of job can have immense social impact on an employee. Due to loss of income, the person might interact freely with friends. Redundancy can reduce the social status of a person.

Emotional – Lack of income after redundancy can bring about emotional stress and depression. A person might not have adequate income to cater for his or her expenses.

Financial – Even though in cases of voluntary redundancy, an employee might be given a package, in the long run, there will be loss of income.

Physical – If the work of a person was physically involving, then redundancy might have negative physical impacts on the person because he will no longer be involved.

Intellectual – After loss of employment, a person might forget about some vital skills for the job and it might be quite difficult to get the next employment.