An LSE study found that youth unemployment threatens material and mental wellbeing leading to higher possibilities of low pay, higher unemployment rate, reduced life chance, and greater health problems in their later life. This study analyses several causes and reasons of scarring:
– Employers may perceive the periods of unemployment as low productivity;
– Unemployment may hardly help young people develop their cognitive and non-cognitive skills which affects the productivity and adaptability that enable them to obtain suitable and sustainable jobs in later life;
– Unemployment in youth can undermine their positive attitudes and optimism which influence their future employment and wage;
– Experiences of unemployment may have less impact on prospects of workers living in high unemployment areas due to the prevalence of unemployment in local labour market.
Read the full report here.