Labor Market Conditions in UK and UAEs: A Comparative Analysis

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HUMAN RESOURCE MANAGEMENT
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Human Resource Management
Labor Market
A labor market is a place that supports the interaction between employers and employees
(Bratton and Gold, 2017, n.p). It gives employers an opportunity to hire qualified employees and
employees are required to perform their duties effectively and efficiently to achieve the goals of
an organization. This paper analyses the conditions of the labor market by comparing those in the
United Kingdom (UK) and the United Arab Emirates (UAEs).
Labor Market Conditions in the UK
In the UK, a person over the age of sixteen may be classified as employed, unemployed or
economically inactive (Gomes, 2012, p.170). The statistics on employment show all the people
being paid for work. It may be part-time or full-time. Unemployed people are those that have
been looking for a job within the last one month and there is a possibility of starting in the next
two weeks. Similarly, people who are unemployed do not have claim over any benefits. The
economically inactive are those that have not been looking for any form of employment for the
past one month, therefore, cannot start working in the next two weeks. A person may choose not
to look for employment due to taking care of the home and family, education, disability or
illnesses.
Inequality in the rate Employment
When it comes to employment, statistics agree with the number of people being paid and
not the jobs because some people hold more than one job. The rate of employment is measured
between the ages of sixteen and sixty-four. The comparison in the rate of employment between
men and women began in 1971. From that time, the rate of employment was at its lowest in
1983. An increase in the rate of employment between both genders was witnessed in 2012.

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Between the months of June and August this year, the rate of employment rose from 75.1% to
75.5% (Checchi and García‐Peñalosa, 2010, p.433).
1978 1988 1998 2008 2018
0
10
20
30
40
50
60
70
80
90
100
UK emplyment rates (aged 16 to 64 years)
women people men
Rate of Employment (Forth et al, 2013, n.p).
2014 2015 2016 2017 2018
71.5
72
72.5
73
73.5
74
74.5
75
75.5
76
76.5
Rate of employment (aged 16 to 64)
Rate of employment Series 2 Column1

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Rate of Employment (Forth et al, 2013, n.p).
The rate of employment rose from 75.1% to 75.5% between the months of June and
August this year but this was lower than that of March which was 75.7%. The rate of
employment in men aged between the age of sixteen and sixty-four 80.1%. The rate of employed
men has reduced since 1991. The rate of employment in women aged between the ages of
sixteen to sixty-four continues to rise. Research shows that 71% of women are employed. This
number has increased within the past one year from 70.7% to 71.3% (Forth et al, 2013, n.p). The
increase in the rate of employed women is due to the changes in the terms of their pension
making few women retire between the age of sixty and sixty-five.
Public and Private Sector
The public sector employment is the number of employees under the local and central
government and public organizations. Private sector employment is determined by finding the
difference between the total employment and public sector employment. The reclassification
effects are the changes caused by the comparison of the public and private sectors of
employment (Clauwaert and Schömann, 2012, p.61). The graph below shows the estimation of
employment in both sectors without the effects. Between the months of March and June this
year, the rate of employment in the public sector dropped by four thousand because Welsh
housing association was transferred into the private sector. Without the transfer, the number of
public sector employment increased by sixteen thousand. Between June 2017 and 2018 the rate
of employment in the public sector reduced by one hundred and twenty-two thousand due to the
transfer. Without the effect, the number of employees in the public sector rose by thirty-four
thousand. Currently, the rate of employment in the public sector National Health Service is
30.9% and those in education are 28.3% (Forth et al, 2013, n.p).

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2014 2015 2016 2017 2018
1400
1450
1500
1550
1600
1650
1700
Public sector employment in National Health Service and education
National Health Service Education Column1
Public Sector Employment in National Health Service and Education (Forth et al,
2013, n.p).
Unemployment
Unemployed people are those that have been looking for a job within the last one month
and there is a possibility of starting in the next two weeks. The rate of unemployment by
determining the economically active people that do not have jobs (Gautié and Schmitt, 2010,
n.p). The lowest rate of unemployment was 3.4% in 1971 and the highest was 11.3% in 1984.

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Currently, the rate of unemployment is 4%.
2014 2015 2016 2017 2018
0
1
2
3
4
5
6
7
The rate of unemployment
women people men
The Rate of Unemployment (Forth et al, 2013, n.p).
1.36million people are unemployed, 733,000 of them are men while 630,000 are women.
Economically Inactive
The economically inactive are those that have not been looking for any form of
employment for the past one month, therefore, cannot start working in the next two weeks. In
1971, the rate of economic inactivity fell due to the reduction in the rate of economic inactive
women. In men, the economic inactivity rose. A person may choose not to look for employment
due to taking care of the home and family, education, disability or illness (Adsera, 2011, p.5).