Economics: UK Government Strategies for Reducing Unemployment Levels

This essay discusses strategies the UK government can implement to reduce unemployment in the medium and long term. It highlights the rise in unemployment in 2020 due to pandemic restrictions and suggests solutions such as boosting aggregate demand, minimizing geographical immobility, implementing employment tax cuts, and improving unemployment insurance. The essay references various sources to support its arguments and provide context on the economic effects of government policies. Desklib offers a range of resources for students, including similar essays and study tools.

Economics for Business
How can the UK government reduce unemployment in the
UK in the medium and long term

How can the UK government reduce
unemployment in the UK in the medium and
long term
In UK, unemployment level has risen in 2020 because of pandemic restrictions with around 1.5
million people unemployed in the year 2020 (Hantzsche, Kara and Young, 2019). For reducing
unemployment level in medium and long term, UK government can do it in mentioned below
ways:
 Boosting aggregate demand
 Minimising geographical immobility
 Employment tax cuts
 Improvising unemployment insurance

References
 Hacioglu Hoke, S., Känzig, D. R. and Surico, P., 2020. Consumption in the time of Covid-19:
Evidence from UK transaction data.
 Hantzsche, A., Kara, A. and Young, G., 2019. The economic effects of the UK government's
proposed Brexit deal. The World Economy. 42(1). pp.5-20. Schmidt, M. G., 2019. The Politics of
Labour Market Policy Structural and Political Determinants of Rates of Unemployment in
Industrial Nations. In Managing mixed economies (pp. 4-53). de Gruyter.
 Watson, I. and Buchanan, J., 2020. Beyond impoverished visions of the labour market.
In Creating Unequal Futures? (pp. 194-228). Routledge.
 Atkinson. A. 2021. U.K. Unemployment Rate Rises to Highest in Almost Five Years. [Online].
Available through: <https://www.bloomberg.com/news/articles/2021-02-23/u-k-unemployment-
rate-rises-to-highest-in-almost-five-years>