More unemployment

what are the problems of comparing real GDP data between countries?

There must be conversion to one country to make comparison but, the market exchange rate does not reflect what people can buy.

What is the solution to the major problem?

To use purchasing power parity exchange rates where £1 will buy the same at home and abroad. The PPP exchange rates allow comparison i.e what people are able to buy in each country.

The problems with unemployment

1.Lower GDP than potential, Lost incomes, lower living standards, lost output will never be recovered. Worsening of the governments logic because ppl will rely on benefits which decreases tax return.

The government spending — tax receipts

If there is unemployment, the budget will get worse and, in the case of Uk governement spending will signficantly exceed tax recipts and increase the budget deficit. A higher budget defecit means that governemnt has to borrow more therefore increase the overall debt.

Impact on long term productive capacity

If there is unemployment the country has less income and is less likely to invest.

Furthermore, long term unemployment de-skills workers they may forget/loose skills, and also are not in work to gain new skills required.    

Migration-