unemployment

unemployment-total-uk

The UK Unemployment Mystery

A feature of the 2008-12 recession has been a largely unexpected fall in UK unemployment.  Unemployment has fallen much quicker than previous recessions. For example, after the much milder 1981 recession, UK unemployment rose to over 3 million (around 11%) and remained high well until the mid-1980s. After the 1991 recession, unemployment again rose sharply, to just over 3 million. Also, in Europe, unemployment has recently risen to…

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Unemployment benefit in UK

Readers question: explain benefits of increasing rate of unemployment benefit – for the unemployed , society and any cost that may result from such policy. Current Weekly Rates of Job Seekers Allowance in UK Contribution-based JSA Age JSA weekly amount 18 to 24 up to £57.90 25 or over up to £73.10   Contribution based JSA  means you must have: worked for 26 weeks in one of these years earning at least the lower earnings limit for that tax year paid class 1 contributions or received National Insurance credits in both of those tax years that amount…

Unemployment during economic boom

Unemployment during economic boom

Q2: Why are there millions of people unemployed even when the economy is booming? During periods of strong economic growth, we can often experience high rates of unemployment. Firstly, there may be structural unemployment. This occurs when the unemployed are unsuited or unable to fill job vacancies. For example, a booming economy may have a growing number of jobs in high-tech industries, but many unemployed may not have the right skills for this job. Alternatively, we could see geographical unemployment. This occurs when the economy is booming in the south,…

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Disguised unemployment

Readers Question: what is the difference between disguised unemployment and involuntary unemployment Definition of disguised unemployment. This is when people do not have productive full-time employment but are not counted in the official unemployment statistics. This may include: People with sickness/disability benefits (but, would be able to do some jobs) People doing part-time work. (sometimes referred to as ‘underemployment’) People forced to take early retirement and redundancy. (no longer counted as in labour force) Disguised unemployment could also include people doing jobs that are completely unproductive, i.e. they get paid…

Unemployment Spain – How to Reduce

Unemployment Spain – How to Reduce

Readers Question: how we can reduce the unemployment (with implication ) in short run and long run and try to give some lively examples except of uk The unemployment rate in the UK is currently quite low about 4.5%. Therefore, it is difficult for the government to significantly reduce this. A lot of the unemployment is frictional. Therefore let us think about reducing unemployment in Spain, where the unemployment rate increased to over 20% (2012-17) Policies to reduce unemployment in Spain 1….

The depth of the European recession

The depth of the European recession

Interesting graph which shows the depth of the EU recession compared to the great depression of the 1930s. Source stats | via Krugman UK recession compared This graph is from the start of 2013. Since, then the UK economy is showing signs of  picking up. But, it is still worth bearing in mind the length of the decline in GDP since the start of the recession.

Economic Policies of the 1970s

Economic Policies of the 1970s

Readers Question I’m currently looking at stagflation in the mid-1970s in the UK, and the policies the then-Government undertook to solve the economic crisis. Was the Government right to widen the budget deficit 1974-5 in order to stimulate demand, or should it have run less expansionary policies to temper the effect of rising prices? Basically, the government faced a twin problem of rising prices (mainly cost-push) and falling demand. (This is known as stagflation) Therefore, they were faced with a difficult trade-off…

UK Unemployment Rate

UK Unemployment Rate

 Latest UK Unemployment Graph Measuring Unemployment The recession has led to a sharp rise in unemployment. Since 2007, economic growth has fallen below the long run trend rate, leading to a rise in cyclical (demand-deficient unemployment) In fact, given state of economy, we might have expected a higher rate of unemployment. The growth in unemployment has been limited by factors such as a growth in part time worker and a decline in participation rates. The outlook for workers, especially young people entering…