unemployment

Reasons for Youth Unemployment

Reasons for Youth Unemployment

A look at the economics reasons for high youth unemployment (16-25) in the UK.During the recession, youth unemployment rose at a faster rate than the main unemployment rate.  After peaking at 20% (1 million) in early 2012, youth unemployment has recently fallen to 12 % (2017) The reasons for youth unemployment are fairly similar to other causes of unemployment. They include:Lack of qualifications. Young people without any skills are much more likely to be unemployed (structural…

UK unemployment-rate

UK Unemployment Stats and Graphs

A selection of graphs and statistics on UK unemployment. Also, looking at factors that explain UK unemployment and why unemployment has fallen in recent years.Raw data:  Labour market data | Source: ONS MGSX (LFS) Current UK Unemployment rateUnemployment rate of 4.3%, (Oct 2017) –  (UK Unemployment at ONS) 1.45 million unemployed people. (ONS)Employment ratesEmployment rate: 75.3% (proportion of people aged 16-64 in work) – ONS Employment:  32.136 million people in work.Participation…

Impact of Immigration on UK Economy

Impact of Immigration on UK Economy

In the past two decades, the UK has experienced a steady flow of net migrants into the economy. This net migration has had a wide-ranging impact on UK population, wages, productivity, economic growth and tax revenue. To what extent does net migration benefit the UK economy?International Migration ONSIn 2016, Net long-term international migration was estimated to be +248,000 in 2016. Immigration was estimated to be 588,000 and emigration 339,000. 9,634…

Trade off between unemployment and inflation

Trade off between unemployment and inflation

A look at the extent to which policy makers face a trade off between unemployment and inflation. The Phillips curve suggests there is a trade off between inflation and unemployment, at least in the short term. Other economists argue the trade off between inflation and unemployment is weak. Theory behind the Unemployment – Inflation trade offIf the economy experiences a rise in AD, it will cause increased output. As the economy comes closer to full employment, we also experience a rise in inflation. However,…

Does inflation cause unemployment?

Readers Question: Does inflation causes unemployment? There are a few different scenarios where inflation can cause unemployment. However, there is not a direct link. Often we will notice a trade-off between inflation and unemployment – e.g. in a period of strong economic growth and falling unemployment; we see a rise in inflation – see Phillips Curve. Also, it is important to bear in mind, (especially in the current climate) If the economy has deflation or very low inflation and the monetary authorities target a modest rate of inflation,…

Historical Unemployment Rates

Historical Unemployment Rates

  UK unemployment rates since 1881.   This shows the fluctuations in unemployment over the past 100 years in the UK. Measuring unemployment is not a precise science. This data mostly relies on administrative statistics on the number claiming some kind of unemployment insurance. The government is changing how unemployment is measures. You can view the pdf for more detail on changing methodology of unemployment. Explaining the change in unemployment Cyclical…

The True Level of Unemployment in UK

The True Level of Unemployment in UK

Readers Question: To what extent do the official UK figures for unemployment accurately reflect economic reality?Summary The government publish two unemployment statistics – the Claimant count and Labour Force Survey.The Labour Force survey asks 60,000 whether they are actively seeking work. The claimant count is the number of those receiving job seekers allowance.The labour force is a better guide to unemployment because the claimant count only includes those eligible for benefits. Another factor to consider is the extent of disguised unemployment. This is when people are not counted as unemployed, but they…

The UK Unemployment Mystery

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…