Changes in UK Labour Markets

Recent changes in UK Labour markets

This involves a decline in the relative size and importance of the manufacturing sector. Therefore it has caused the following effects:

Less full time manufacturing jobs
Decline in Trades. Unions. Trades unions used to have a strong union density in the manufacturing sector
Structural unemployment. This is a particular problem in the North and amongst low skilled workers (often male).

As the manufacturing sector has declined there has been an increase in the service sector. This has caused the following effects:

Unions less influential. This is because it is more difficult to form unions in the service sector where there is more disorganisation.
Increase in part time and flexible working hours
Increase in proportion of women in the labour force because they tend to prefer service sector jobs to manufacturing

This leads to an increase in the dependency ratio, fewer workers have to support more economically inactive people.

Increase in Labour Market Flexibility

due to:

Flexible Labour Markets

Minimum Wages