labour markets 2 - Economics Help

Reasons for net migration into the UK

16 June 202215 June 2022 by Tejvan Pettinger

The latest stats for UK net migration show annual net migration of 239,000 (Q1 2022). This used to be roughly split between EU and non-EU migrants. But, since Brexit, there has been a big change with 437,000 immigrants from Non-Eu and 195,000 from the EU.

In Q1 of 2020, there were 437,000 annual immigration from Non-EU countries and 195,000 from EU Countries
Net migration of EU is now close to zero, with just 58,000, compared to 316,000+ from outside EU.

Reasons for migration into the UK

According to data by the ONS, the biggest reason for net migration into the UK is to pursue education studies. This accounts for 257,000 (Nov. 2014)
The second biggest reason is work related 228,000
The third biggest reason is to join family already living in UK or accompany partner moving to UK – 70,000
Other reasons 13,000 includes vague responses, such as ‘coming back to live’

Asylum seekers

14,734 people were granted asylum in 2021

Reasons for migration depend on country of origin

migration-region-birth — Source: ONS migration

For recent arrivals (2007-11) study is one of main reasons for migration.
Employment and unemployment rates for UK citizens and EU migrants are very similar.

Reasons for falling wages

5 July 202210 December 2021 by Tejvan Pettinger

Since the financial crisis, we have seen an unprecedented stagnation/decline in real wages. This decline has been most noticeable for low-income workers, with growing levels of inequality. The decline/stagnation in real wages is a global phenomenon – though some countries have been more affected than others. Reasons suggested for falling/stagnant wages since 2008 include: Recession …

Does real wage inflation help the economy?

1 November 20212 March 2021 by Tejvan Pettinger

Real wage inflation means an increase in average earnings adjusted for inflation. See also: Real wages Rising real wages means an increase in living standards and greater purchasing power of consumers. In the past decade, many economies such as US and UK have witnessed stagnant real wage growth. A rise in real wages would be …

Participation Rate

5 April 202230 June 2020 by Tejvan Pettinger

Definition of Participation Rate. The participation rate is the number of people working or actively seeking work as a % of the working population (16-65). The participation rate is similar to the concept of being ‘economically active’. If a person drops out of the labour market, they are considered economically inactive and no longer participating. …

Factors that explain wage inequality

10 February 20268 September 2019 by Tejvan Pettinger

A look at factors that explain wage inequality – including classical economic theory and labour market imperfections. Readers Question: Idealized free market theory argues that it is automatic for each worker to receive just what he or she is worth; otherwise, an “underpaid” worker could just look elsewhere to bid a higher salary. Could established …

The gig economy

8 May 20187 May 2018 by Tejvan Pettinger

The gig economy refers to the segment of the labour market which concentrates on short-term / temporary jobs and contracts. Often these workers can have more than one job, e.g taxi driver who works both for a traditional taxi company and Uber. Like a musician who goes from one gig to the next, the gig …

Impact of increase in female labour market participation

19 April 201819 April 2018 by Tejvan Pettinger

A look at the economic impact of an increase in the supply of female workers in labour markets. In summary: Increased female labour market participation will lead to increase in supply of labour, and in theory, could lead to lower wages. However, a gradual increase in female labour market participation is often in response to …

Measures of Poverty

15 August 201824 November 2017 by Tejvan Pettinger

Poverty implies low income and struggling to meet basic needs. There are two main types of poverty Absolute poverty – income below a certain threshold necessary to meet basic necessities of life (food, shelter, clothing, rent) Relative poverty – Individuals receiving income a certain level (e.g. 50%) below the median income of the general population. …