Sunday, October 9, 2011
Unemployed risk a permanent pay cut
This article further explains one of the greater side effects of an economic down turn. This article speaks about the long term effects of job losses and unemployment. The concept is fairly straight forward as the idea that time outside of being actively employed tends to cause a drop in lifetime earning. In the case of a an economic downturn seems to be two fold often requiring retraining or in some cases the shifting your field of work.
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I thought this was a pretty interesting article and looking at the long term effects to being unemployed. It can be very tough to obtain a job of equal or greater earnings after becoming unemployed but unfortunately that is the impact a struggling economy can have on its people.
ReplyDeleteYeh this is the consequences we have to bare its nothing new to though if you are unemployed for a long time you won't have enough saving for future expenses or even for daily expenses.
ReplyDeleteThe article is very interesting in that it looks into realities that the unemployment rate often does not reflect. I feel that the article does a good of hinting at discouraged unemployment which could result from loss of pay due to unemployment. The article also talks about how people could take to desperate measures such as change in careers which I feel could affect the human capital of the economy in the long run. In essence the TFP of the economy could be affected which would in turn hurt its growth prospects.
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