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'The rate of unemployment among 15-24 year olds in Ireland has increased by 74% between 2006 and 2011' (Profile 3 at Work, Central Statistics Office, July 2012) - Leaving Cert Economics - Question 8 (a) - 2013
Question 8 (a)
'The rate of unemployment among 15-24 year olds in Ireland has increased by 74% between 2006 and 2011' (Profile 3 at Work, Central Statistics Office, July 2012). (i... show full transcript
Worked Solution & Example Answer:'The rate of unemployment among 15-24 year olds in Ireland has increased by 74% between 2006 and 2011' (Profile 3 at Work, Central Statistics Office, July 2012) - Leaving Cert Economics - Question 8 (a) - 2013
Step 1
Explain three economic consequences of a high rate of youth unemployment on the Irish economy.
Answer
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Confidence in Economy: A high rate of youth unemployment negatively impacts consumer confidence. When young individuals are unable to secure jobs, they tend to postpone purchasing decisions. This decrease in consumer spending can lead to a decline in overall economic activity and growth, creating a cycle of reduced business investment and further job losses.
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Income Levels: High youth unemployment leads to lower income levels among this demographic. When young adults are jobless, their ability to earn and contribute to the economy is diminished. This not only affects their current financial stability but also limits their future earning potential, which can have long-term effects on the country's GDP.
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Social Security Costs: Increased youth unemployment places a higher burden on government resources through social support and unemployment benefits. As more young people rely on these services, government budgets can become strained, leading to potential cuts in other essential services or increased taxes for working citizens.
Step 2
Discuss three measures which the Irish government may introduce to reduce the problem of youth unemployment.
Answer
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Job Training Programs: The government could invest in skill development and vocational training programs tailored for young people. By aligning training with the needs of the job market, these initiatives can enhance employability and provide youth with the necessary skills to secure employment.
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Incentives for Employers: The government may consider implementing tax incentives or subsidies for businesses that hire young workers. By reducing the cost of hiring, employers may be more inclined to take on young staff, thus reducing unemployment rates among this age group.
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Public Sector Employment Initiatives: Establishing programs in the public sector that focus on providing temporary employment to young people can also be effective. This not only gives young individuals work experience but also helps them build professional networks, making transitions to permanent employment easier.