Unemployment Rate in Uk

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- 2011- to Date

Since 2011, the rate of employment has decreased gradually from 6.5% to 3.8%. Which means the level of unemployment has decreased. According to Mark Carney, the Governor of the Bank of England, the bank would only lower the interest rate in response to the decrease in an unemployment rate of 7% (ONS Digital, 2016). In 2014 the unemployment rate decreased by 6.9%, and these statistics showed that many workers were getting employed. Despite the promise by Mark the Bank did not lower their interest rates since economist indicated that it would be so soon to see any upward movements. The unemployment rate in 2016 according to news reports was 3.4 which was a 0.2 decrease from the previous year. In 2016 the employment rate between genders was 4.9 percent. This is an improvement in comparison to previous years. According to the unemployment forecast in the years to come, the unemployment rate will not follow the same trend as expected. The forecast believes that in 2017 the unemployment rate will be 5.0 between genders and the overall rate of unemployment which means that it will increase by 0.1 percent (BBC Business, 2017, pp. 2–4). The above graph shows a different path since for the year 2011 the rate of unemployment has been decreasing slowly (National Statistics, 2016a). The North East of England according to the Regional UK unemployment rate shows that it has the highest rate of unemployment. This data will help policymakers to understand the nature of future unemployment. Other data includes the trend in unemployment, the skills levels of employees, the number of unemployed individuals, regional disparities and others.

The current decreased rate of unemployment has been caused by numerous changes in the UK’s government (Pircado, 2009, p. 3). In 2014 the government increased the labor force as they looked to improve the unemployment situation. Due to regional differences in the level of unemployment, the government implemented laws that affect the ways of jobs advertisement. They detected that some of the areas received more jobs in comparison to others. Jobs in the UK that were being advertised in other countries had to be decreased to avoid many immigrants going to the UK and increasing competition for job opportunities with the local individuals. The government had to implement measures that would affect the boundaries of advertisement. This was a response due to proposals ,that informed the government, that most of their jobs were being taken by the immigrants. A massive change was observed due to these laws, and in the three months to November the UK’s unemployment decreased by 52000 and result to a level of unemployment of 1.6 million (ONS Digital, 2016). In this year according to the graph showed low levels of unemployment. According to the Office for National Statistics the unemployment rate was steady at an 11-year low of 4.8 percent which resulted in a record of 74.5% steady rate of employment. The gradual change of the unemployment rate shows an improvement in the UK’S economic growth.

3.0 Recommendation

I would recommend the UK to increase labor and introduce policies that would cope with unemployment. Policies that improve labor market flexibility should be introduced. the government should also support collapsing companies through funding to avoid occurrences that happened in 1993. Investments in the technology sector should be increased so as to increase the level of employment. Education and training policies should be changed for there to be an opportunity for the unemployed individuals. Unemployed individuals should have basic skill such as I.T and find work in the service sector.

4.0 Conclusion

In conclusion, the United Kingdom rate of unemployment has decreased between the years 1992 up to date. The change according to the graph is from 8.5 to 3.8 percent. However one cannot ignore opposite changes in the years such as 1993, 2005, 2006, 2008 and 2009. In the graph these years the unemployment rate seemed to increase. Each year in which the unemployment rate has increased, there has been a substantial reason why such changes. For example, the country has observed changes due to recession-hit in 1993 and closure and the collapse of big companies in 2005. According to recent research by the unemployment forecast, they believe in the years to come people have to expect different scenarios. They have depicted that at the end of 2017 the rate of unemployment will increase (BBC Business, 2017, p. 2). However, not all information should be fully accepted because some of the predictions end up being wrong. According to other research, the rate of unemployment in the months between January and March of 2017 the rate of unemployment has decreased. In the coming months, it has also been depicted to decrease by 0.1 percent.

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References

BBC Business. (2017, January 18). UK unemployment falls to 1.6 million. BBC News. Retrieved from http://www.bbc.com/news/business-38661443

Economic Review, May 2009. (2009). Economic & Labour Market Review, 3(6), pp.7-14.

National Statistics. (2016a). Female unemployment rate (aged 16 and over, seasonally adjusted) - Office for National Statistics. Retrieved May 28, 2017, from https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment/timeseries/mgsz/lms

National Statistics. (2016b). LFS: Unemployment rate: UK: All: Aged 25-49: %: SA - Office for National Statistics. Retrieved May 28, 2017, from https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment/timeseries/mgxb/lms

ONS Digital. (2015, February 27). Trends in the UK economy | Visual.ONS. Retrieved May 28, 2017, from http://visual.ons.gov.uk/uk-perspectives-trends-in-the-uk-economy/

ONS Digital. (2016). Unemployment rate (aged 16 and over, seasonally adjusted) - Office for National Statistics. Retrieved May 28, 2017, from https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/unemployment/timeseries/mgsx/lms

Pircado, E. (2009, November 23). How The Unemployment Rate Affects Everybody. Retrieved May 28, 2017, from http://www.investopedia.com/articles/economics/10/unemployment-rate-get-real.asp

Trading Economics. (2017). United Kingdom Unemployment Rate | 1971-2017 | Data | Chart | Calendar. Retrieved May 28, 2017, from tradingeconomics.com/united-kingdom/unemployment-rate