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    Financial Analysis UK

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    Eiyza E'll
    This document discusses unemployment in the United Kingdom over the past 10 years. It finds that unemployment rose sharply from 5.3% in 2008 to a high of 8% in 2009 due to the recession, and then fell gradually to 5.5% by 2015. Flexible labor markets, low or stagnant wages, falling productivity, and an increase in zero-hour contracts have all contributed to unemployment problems in the UK. While current unemployment rates are relatively low, stagnant wages and over 2.5 million still unemployed remain serious economic and social issues for the country.

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    Financial Analysis UK

    Uploaded by

    Eiyza E'll
    36 views5 pages
    This document discusses unemployment in the United Kingdom over the past 10 years. It finds that unemployment rose sharply from 5.3% in 2008 to a high of 8% in 2009 due to the recession, and then fell gradually to 5.5% by 2015. Flexible labor markets, low or stagnant wages, falling productivity, and an increase in zero-hour contracts have all contributed to unemployment problems in the UK. While current unemployment rates are relatively low, stagnant wages and over 2.5 million still unemployed remain serious economic and social issues for the country.

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    This document discusses unemployment in the United Kingdom over the past 10 years. It finds that unemployment rose sharply from 5.3% in 2008 to a high of 8% in 2009 due to the recession, and then fell gradually to 5.5% by 2015. Flexible labor markets, low or stagnant wages, falling productivity, and an increase in zero-hour contracts have all contributed to unemployment problems in the UK. While current unemployment rates are relatively low, stagnant wages and over 2.5 million still unemployed remain serious economic and social issues for the country.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    36 views5 pages

    Financial Analysis UK

    Uploaded by

    Eiyza E'll
    This document discusses unemployment in the United Kingdom over the past 10 years. It finds that unemployment rose sharply from 5.3% in 2008 to a high of 8% in 2009 due to the recession, and then fell gradually to 5.5% by 2015. Flexible labor markets, low or stagnant wages, falling productivity, and an increase in zero-hour contracts have all contributed to unemployment problems in the UK. While current unemployment rates are relatively low, stagnant wages and over 2.5 million still unemployed remain serious economic and social issues for the country.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 5

    MAT 1223 (INTRODUCTION TO ECONOMICS)

    OCT DEC 2015


    INDIVIDUAL ASSIGNMENT
    UNEMPLOYMENT ISSUE IN UNITED KINGDOM

    PREPARED BY

    : MOHD KAMIL BIN KAMAL

    GROUP

    : DiA 14

    PREPARED FOR

    : EN ABD HADI BIN MUSTAFFA

    1.0 Country Background (United Kingdom)


    Destination Great Britain, the United Kingdom of Great Britain and Northern Ireland,
    commonly known as the United Kingdom (UK) and Britain, is a country in northern Europe
    that consists of England, Wales, Scotland, and the province of Northern Ireland which
    occupies the north-eastern part of the island of Ireland. The UK is located on an archipelago
    known as the British Isles with the main islands of Great Britain and Ireland, and the
    surrounding island groups of the Hebrides, the Shetlands, the Orkneys, the Isle of Man and
    the Isle of Wight. The United Kingdom is located off the northern coast of France, and west
    of Sweden and Denmark, between the North Sea and the North Atlantic Ocean.
    Below here are information related to United Kingdom:
    Item
    Official Name
    Capital City
    Government
    Geography
    Population
    Major Industries
    Currency

    Information
    United Kingdom of Great Britain and Northern Ireland
    London
    Constitutional Monarchy
    Area 243,000 km2
    Location Western Europe
    65 Million (year 2014)
    Machine tools, electric power, automation, railroad,
    shipbuilding, aircraft, coal, petroleum, clothing and foods
    British Pound (GBP)

    2.0 Unemployment Statistic for 10 years in UK

    Based on the graph above, there are several findings and analysis:
    a) Overall for 10 years, the unemployment rate in UK is increase in the range between
    4.8% (lowest) and 8.5% (highest).
    b) There are a massive increase of unemployment occur in year 2008 to middle of year
    2009 from 5.3% to 8%. Which is led to the huge increase of 2.7%.
    c) There are improvement in unemployment rate whereby the drop was occur in middle
    of year 2013 to year 2015 from 7.6% to 5.5%. Therefore the drop range was 2.1%

    3.0 Factors of Unemployment issue in United Kingdom


    There are several factors that lead to huge unemployment problems in United Kingdom:
    a) Flexible labour market issues
    The statistics suggest that UK labour markets are more flexible. Therefore its easier
    to cut hours and keep people employed on short term basis only. In other words, its
    easy to hire and fire workers based on nature job needed. Example such as working
    as voluntary government services.
    b) Flexible pay issues
    Due to flexible labour market issues, therefore the pay also flexible and sometimes
    below the market, lower than inflation. And somehow due to expansive economy, the
    inflation rate in UK is higher (2.5% in year 2014). Therefore company find it hard to
    cope with salary issues.
    c) Falling in productivity
    In UK, the recession occur between year 2008 to 2010 which led to massive increase
    in unemployment. Where the demand is excessive, but somehow industries cannot
    cope with demand due to falling output.
    d) Growth in zero-hour contract
    The number of zero hour contracts have increased from 50,000 (2005) to 200,000 in
    (2013). This means workers have no guarantee of how many hours they will get paid
    for. It is a factor in explaining why there is more under-employment

    4.0 Conclusion
    There are many reasons to be gloomy about the UK economy. The threat of a triple dip
    recession, the most protracted drop in GDP on record and a growing trade deficit. But, the
    unemployment figures are relatively good. However, it has come at the cost of falling real
    wages and stagnant labour productivity. Also, we shouldnt under-estimate the fact an
    unemployment rate of 2.5 million is still a very serious economic and social problem. If
    recovery had been stronger, the unemployment rate could be much lower, and if we fail to
    see strong and sustained economic recovery, unemployment will continue to be a serious
    problem. But, it suggests that encouraging labour market flexibility has definite benefits for
    unemployment, and it is something the Eurozone may also benefit from.

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