Costs of Unemployment
18 February 2009
In an interview on Radio 4's PM programme, Professor Paul Gregg discusses the costs to the Treasury of unemployment. He believes that the number of unemployed persons is likely to rise to 3 million in the current recession.
In the interview Professor Gregg also stressed the 'scarring' effects of long-term unemployment. He estimated that long periods of unemployment reduce life-time earnings by around 10-12% as many unemployed individuals resume employment in low-pay jobs with less secure tenure.
Use this link for an MP3 version of the full interview.