Unemployment scarring

Decades of research has shed light on the ‘scarring’ effect of youth unemployment – it can have a life-long impact on people in terms of subsequent lower pay, higher unemployment and reduced life chances.

Several studies have shown that living without work is harmful for one’s health. Not only does it affect income and career, but unemployment also impacts on wellbeing and stress, affecting both physical and mental health - which in turn can reduce income and chances of getting a job later in life.

Research has also uncovered the long-term cost to the public purse, in terms of future benefit claims and lost tax revenues due to ‘scarring’. Some estimates based on birth cohort studies suggested that current and future costs to the exchequer could total £28 billion. Youth unemployment has a huge impact - both on individuals and society.