unemployment

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 ONS In 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 off If 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,…

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…

The Luddite Fallacy

The Luddites were a group of English textile workers who violently destroyed machines. They broke up power looms because they feared that these new machines were taking their jobs and livelihoods. Against the backdrop of the economic hardship following the Napoleonic wars, new automated looms meant clothing could be made with fewer lower-skilled workers. The new machines were more productive, but some workers lost their relatively highly paid jobs as a result. It was this unemployment of former skilled workers which led to the industrial unrest and direct action.

UK unemployment-rate

UK Unemployment Stats and Graphs

A selection of graphs and statistics on UK unemployment (currently 5.5%). Also, looking at factors that explain UK unemployment and why unemployment has fallen in recent years. Raw data:  Labour market data | Source: ONS LF2Q Current UK Unemployment rate Unemployment rate of 5.5%, (July 2015) –  down from 6.2% July 2014 1.82 million unemployed people- 198,000 less than July 2015 Employment rates Employment:  31.09 million people in work – 22.74 million full-time. 8.36 million people working part-time Participation…

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…