No Work and No Education, What are the Long Term Effects of the Recession on Britain?

Feb. 26, 2010 - PRLog -- The Times and The Metro have reported the effects of long term unemployment and no study options over the last two weeks.  With an extra 106,389 students applying for courses – an increase of almost a quarter on this time last year and with the governments cut in the education budget it is not looking promising for talented students to get placements. Applications from mature students have gone up by nearly two-thirds to 62,322, and competition has also been increased by 46,012 people re-applying after missing out last year.

Ucas chief executive Mary Curnock Cook said this year would be "very challenging and competitive" for students and universities.

There are several reasons to worry about the high long-term unemployment numbers. On the individual level, the longer you stay unemployed, the more unemployable you become. People lose job skills, social skills and the will to search for a job as they spend time out of work. Unemployment affects individuals' sense of well being, producing higher rates of depression and lower levels of life satisfaction. On average all job losers tend to face a permanent reduction in their salary, and that is even more common for the long-term unemployed.

Long-term unemployment is also dangerous for the economy as a whole. One quarter of the long-term unemployed permanently leave the workforce, a recent study by the Congressional Budget Office found, producing increased loss of output in the economy. Long-term unemployment burdens social services, diminishes spending levels in the economy and drains overall savings.

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