Economics Articles

Essays on topical issues, latest developments in UK and global economies, and answers to readers questions

Labour shortages

Posted on February 14, 2017

Labour shortages occur when employers struggle to fill labour vacancies because of insufficient labour applying for the jobs. Labour shortages can occur in geographical regions or in occupations with special requirements in terms of skill or function. Labour shortages can also be seasonal in industries like retail (Christmas) and agriculture (harvest time) Reasons for labour …


Should we be concerned about a falling savings ratio?

Posted on February 9, 2017

In the Bank of England’s latest forecast for the UK, they predict reasonably good economic growth in term of real GDP. At the same time, forecasts for average real incomes are more pessimistic. The Bank of England suggests UK economic growth will be maintained by consumer spending – spending which will partly be funded by …


Savings ratio UK

Posted on

Definition of Household savings ratio: The percentage of disposable income that is saved. (1) Total savings = Disposable income – Household consumption UK Saving Ratio Latest UK household savings ratio: Q3 2016 = 5.6% (Feb 2017) The Bank of England have forecast a fall in the savings ratio during 2017 because of the effects of …