In 200 words, reflect on four implications unemployment poses for community life.
Unemployment is a major life event. It can have a devastating impact on people’s lives. It affects not just the unemployed person but also family members and the wider community. The impact of unemployment can be long-lasting. As unemployment becomes more long-term, its impact becomes more far-reaching, often affecting living standards in retirement. The loss of income by the parents can damage the prospects of the next generation. Apart from the personal impact, unemployment is a loss of valuable productive resources to the economy. The impact of job
loss in rural and regional areas flows through the local community damaging businesses as family expenditure is reduced. Further damage to local communities may result from people leaving in search of work.
The financial, budgetary, and economic effects of unemployment are profound. Many of those who leave the workforce unwillingly do not have the resources for a comfortable and long retirement. The price paid by society is increased income support, health, and community support costs, and reduction in human capital and productivity. Entrenched unemployment results in a divided nation where those with jobs benefit from economic growth while those missing out may be relegated to secondary status.
The psychological and social costs of retrenchment and prolonged unemployment during the productive years of life impact harshly on the quality of life of affected individuals and families. Experiences of low self-esteem and loss of self-identity impact physical and mental health and can extend to broader consequences of social isolation and the loss of social networks and support. The impact of redundancy causes family disruption and breakdown. At the very least it reduces people’s sense of membership and contribution to the life of the community.
There is grief and loss. A consistent theme put before the inquiry was that many policies and services frequently do not recognize the emotional trauma induced by unemployment and the reverberating effect that this has on the family. Many submissions argued that the compounded grief arising from unemployment rarely receives the support, counseling, compassion, and sympathy that a major loss deserves.
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