... unemployed now, compared to 30 years ago, unemployment periods can last for nearly three times as long nowadays. Such long periods of unemployment cause those without work to lose skills and motivation and their problem is hampered by the fact that employers may frown upon their long period without a job. This alienates people from the workforce making it less likely for them to find work than the short term unemployed. The increase in equilibrium unemployment levels between the 1960's and the 1970's may possibly stem from an increase in the generosity of the benefits system. Benefit programs are also known as social insurance, the welfare state or more commonly known as 'the dole'. The indefinite availability of benefits is a key problem where many see taking a job as less attractive than remaining without work. Such relaxed benefit schemes also give workers an alternative to working for low wages - ...

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