MOD3327 Economics: Examining Long Term Unemployment Trends in the UK

This presentation provides an overview of long-term unemployment in the UK, focusing on the demographic of long-term unemployed individuals and the underlying reasons for their unemployment. It highlights that long-term unemployment is defined as joblessness lasting more than six months, noting the UK's overall unemployment rate of 4.3% as of 2021. The presentation identifies key factors contributing to long-term youth unemployment, including financial crises, skill mismatches, lack of capital access, cyclical unemployment, real wage unemployment, and geographical unemployment. The presentation references several academic sources to support its analysis of the complex issues surrounding long-term unemployment in the UK.

z
Economic for Business
Who make up the long term unemployed in the UK and why

z Who make up the long term
unemployed in the UK and why
Long term unemployment refers to a period of jobless which lasts more than six months of period. For UK as whole,
unemployment rate was 4.3 per cent that is lowest rate till 2021 (Youth unemployment rate UK, 1992-2021, 2021). It has
been analysed that there are around 475 thousand unemployed people between age of 16 and 24 in UK in last three months
leading to September 2021. There are multiple reasons behind long term youth unemployment in UK. Some of the reasons
because of which youth makes long term unemployed in UK are as follows:
 Financial crisis
 Skill mismatch
 Lack of capital access
 Cyclical unemployment
 Real wage unemployment
 Geographical unemployment

z References
 Black, R. and Walsh, L., 2019. Imagining youth futures: university students in post-truth times (Vol. 9). Springer.
 Carreras, M., Irepoglu Carreras, Y. and Bowler, S., 2019. Long-term economic distress, cultural backlash, and support
for Brexit. Comparative Political Studies. 52(9). pp.1396-1424.
 Furlong, A. ed., 2017. Routledge handbook of youth and young adulthood. London: Routledge.
 Speckesser, S. S., Carreras, F. J. G. and Sala, L. K., 2019. Active labour market policies for young people and youth
unemployment: An analysis based on aggregate data. International Journal of Manpower.
 Youth unemployment rate UK, 1992-2021. 2021 [Online]. Available through: <
https://commonslibrary.parliament.uk/research-briefings/sn05871/>
 Young people making up long term unemployed in UK. 2021. [Online]. Available through: <
https://www.bbc.com/news/business-52660591>