Economics for Business: Analyzing UK Unemployment During Covid-19

This report examines the impact of the Covid-19 pandemic on the UK's unemployment rate. It highlights the initial decrease in unemployment followed by a rise in mid-2020 and subsequent fluctuations as the pandemic evolved. The report attributes the impact to factors such as labor market shutdow...Read More

Economics for
Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
What happened in UK during the Covid – 19 pandemic and the impact of the unemployment
rate due to this and why?........................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Unemployment means the people who have been effectively looking for work from the
last few week and ready to start work within the fourteen days. The joblessness rate isn't the
extent of the absolute population who are jobless (Chakraborty and et. al., 2021). In this report,
the unemployment and the causes of it is explained. Along with the reason and impact on the
unemployment rate during the pandemic.
MAIN BODY
What happened in UK during the Covid – 19 pandemic and the impact of the unemployment rate
due to this and why?
The pandemic have hit very sector in a very crucial and significant way. All the sectors
were deeply effected and were head struck sighting the situation of coronavirus. It had impacted
the economy of UK in the demographic sectors.
 When the covid – 19 came, in the fourth quarter of 2019, the unemployment rate
decreased with 3.6 % and showed a slight increase in the percent in quarter 1 and 2 of
the year 2020.
 At the start of quarter 3 of 2020, the rate rose to 4.8 %, which is economically not good
for the country and now it is keep of elevating.
 In the quarter 1 of 2021, it again put a break and decreased to 4.3 %, when the covid
pandemic situation calmed down.
 In September 2021, unemployment rate decline to 4.3 %, which was the lowest since July
2020.
 The unemployment rate of UK declined to 4.3% in the quarter to September 2021 which
was the lowest since the three months to July 2020 and beneath market assumptions for
4.4%.
 The rate stayed 0.3 % focuses higher than the situation before the pandemic. The quantity
of jobless people was decreased by 152,000 to 1.45 million, while piece of work rose to
32.52 million by 247,000, above expectations for a 185,000 increase (Donitsa-Schmidt
and Ramot, 2020).

The quarterly lessening in joblessness was driven by those who were jobless for long as a year,
with those idle for as long as a half year diminishing to marginally beneath pre – pandemic levels
and those out of work for somewhere in the range of 6 to 12 months proceeding to diminish from
the top which came to in mid 2021 (Lim and To, 2021). In the mean time, long – term
joblessness keeps on elevating. It showed the quantity of representatives on organization books
rose by 160,000 to a record 29.3 million in October, the principal month after the finish of the
public authority's occupation ensuring vacation conspire, while work opening hit another record
of 1.172 million.
The reason of the impact on the unemployment rate during pandemic because:
1. The labour market was shut completely, only the essential factories and stores were
opened. So, the need of the labour was decreased.
2. The production work was stopped for the factories which were not essential and were
given a shutdown completely of some of the shops. It happened to decrease in the
employment rate.
3. The economic crisis during the pandemic increased the demand of the family care,
because the schools, institutions and colleges were closed (Scambler, 2020).
4. People were graduating, but there was no scope for the jobs as the large companies did
not open the vacancies for the freshers who were graduated during the pandemic.
CONCLUSION
It can be concluded from the above report that, labour market contributes majorly to the
unemployment. In the situation of pandemic, when there was a closure in the entire world, the
daily wage workers were the most impacted people. In that time, there was no livelihood for the
individuals. But, when the situation of coronavirus got controlled, it increased the employment
rate with the decrease in the jobless people. The position of work for the jobs were risen and this
made the individuals take a breath of relief. But then again, the when the cases of Covid rose. So
the government of UK should take the major step for the remedy issues of unemployment, as it
will beneficial for the economic growth of the country.

REFERENCES
Books and Journals
Chakraborty, M. and et. al., 2021, February. Economy and Unemployment Due to COVID19:
Secondary Research. In International Conference on Intelligence Science. (pp. 285-
290). Springer, Cham.
Donitsa-Schmidt, S. and Ramot, R., 2020. Opportunities and challenges: teacher education in
Israel in the Covid-19 pandemic. Journal of Education for Teaching. 46(4). pp.586-595.
Lim, W.M. and To, W.M., 2021. The economic impact of a global pandemic on the tourism
economy: the case of COVID-19 and Macao’s destination-and gambling-dependent
economy. Current Issues in Tourism. pp.1-12.
Scambler, G., 2020. Covid-19 as a ‘breaching experiment’: exposing the fractured society.
Health Sociology Review. 29(2), pp.140-148.
Yan, Y. and et. al., 2021. Can tourism sustain itself through the pandemic: nexus between
tourism, COVID-19 cases and air quality spread in the ‘Pineapple State’Hawaii.
Current Issues in Tourism. pp.1-20.