Economic Analysis: Labour Issues and Unemployment in the UK

This report provides a detailed analysis of labor issues in the United Kingdom, with a specific focus on unemployment. It begins with an introduction defining labor issues and their impact on productivity, followed by an examination of the UK's unemployment problem, including statistical data from 202...Read More

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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Labour issue in United Kingdom................................................................................................1
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The term of labour issues refers to violations of labours rights which ignore by the
government continuously. Labour is the quantity of humans that makes effort physically,
mentally and socially to manufactured products in an economy. In present time every country
face the different labour issues that directly impact on the productivity. Such as unskilled labour,
imperfections, unemployment and many others (Baah-Boateng, 2017). These problems carry out
other problems that impact on the efficiency of country and present their economy situation. This
report based on the labour issue in United kingdom where people face of unemployment. In this
report consist of economy problem and different economy methodology to determine the
problem. Along with, present all appropriate data and theory to understand the problem in depth
manner.
MAIN BODY
Labour issue in United Kingdom
In present time United Kingdom face the problem of Unemployment that impact on the
country development and present their economical condition. Unemployment occurs in the
country when people are not employed by the company and actively seeking employment. In
economics mainly use the amount of available people for work. It is measured by the office for
National statistics and get that after the Corona Virus unemployment rate increased to 4.9% in
three months of October 2020. It is compared with the last year analysis which was 4.8% and
increased at highest level. The total working hours worked had a record enhance from the low
levels in the prior year as the number of corona virus lock down (Bogg, Dukes and Novitz,
2017). The UK unemployment rate fall down in three months to October 2020 that was
approximated 4.9% and about 1.2% greater than a year earlier and identify increase 0.7%
compare of last year.
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As per the above chart it is analysed that after the pandemic situation, most of the people
lose their job that impact on their work life. There are analysed that from the January 2020 to
October 2020 continuously increase Unemployment in United Kingdom. In Jan 20, 3.8 and
reached on 4.9% in October 2020. It means country face bigger economic problem that direct
impact on their Gross domestic product (Bryceson and Geenen, 2016).
The rate of Unemployment measured in a percentage and for the calculation dividing the
number of unemployed individuals by the number of persons presently equipped in the work
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force. For the measurement of unemployment rate apply four methods that helps to carry out the
results such as:
 Official estimates: There are applying three methods to collect all the information and it
is not preferred to calculate unemployment rate.
 Social insurance statistics: These types of statistics used by the number of individuals to
collect all the unemployment advantages. This method criticize due to unemployment
advantage makes the calculation incorrect.
 Labour force sample survey: In this statistics provide all the results that calculate by
various categories like gender as well race. It is mainly applied by country at
international level.
 Employment office statistics: It is consisting of monthly overall unemployment peoples
that enter into offices.
Economic methodology: It is the study of different concepts and methods to analysis the
economic problem that occur in country. There are consisting of different principles of economic
reasoning, theory and models. The methodology use for analysing the problem that occur in
country like unemployment. For the analysis use two methods that help to identify the problem
that arise in the country. These methods are such as: Inductive and Deductive. Firstly for the
analysis require to identify the problem the generalisation in low economic condition and use
various terms for the analysis. After that collect various charts and data that helps to analysis the
problems effectively. After that know the factors that become the reason of create issues
(Cubilla‐Montilla and et.al., 2019).
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The unemployment data rate held steady at 3.9 percentage from the months of April. The
main concern of the jobless individual that likely provided from the 624000 fall down in payroll
numbers from the month of February look out at the lock down. The Labour force survey
presents a large increment in the unemployment rate after the re council of the employment rate.
Most of the numbers of redundancies reached at the record of high in the month of August to
October 2020 (Christiano, Eichenbaum and Trabandt, 2016).
Calendar GMT Referenc
e
Actua
l
Previou
s
Consensu
s TEForecast
2020-09-15 06:00
AM Jul 4.1% 3.9% 4.1% 4.1%
2020-10-13 06:00
AM Aug 4.5% 4.1% 4.3% 4.2%
2020-11-10 07:00
AM Sep 4.8% 4.5% 4.8% 4.9%
2020-12-15 07:00
AM Oct 4.9% 4.8% 5.1% 5.0%
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Calendar GMT Referenc
e
Actua
l
Previou
s
Consensu
s TEForecast
2021-01-26 07:00
AM Nov 4.9% 5.1%
2021-02-23 07:00
AM Dec 5.5%
2021-03-23 07:00
AM Jan
2021-04-20 06:00
AM Feb
From the above table it is getting that in the year of 2020 from the month of July
continuously increase the unemployment rate. Along with there are mentioned different actual
and previous rate that probably change as per the situations. As the Corona virus continued
impact on the labour market and redundancies reached on the high record which is 370,000. At
the same time total working hours increase by the employers and cut their salaries (Fujita and
Moscarini, 2017) .
Economic theory: There are a wide range of economic theories which are related with
the labour market (Hall, 2017). The application of these theories ensure that the handling of
labour in the economy is done in a proper way. There is an importance of these particular
theories to be applied in the labour market because they will be helpful in maintaining a balance
between the demand and the supply of labour in a highly effective manner. Thus in this way the
labour issues which are being faced within the country can be managed.
According to Neoclassical microeconomic model of supply, the people within the labour
market are considered as rational and it is assumed that they are going to maximize their utility
in a highly effective manner. There are various types of models under this theory which affect it
such as taxation, welfare, work environment and income. Overall, this theory ensures that the
relationship between the labour, work hours and wage rates are effectively established. Thus the
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labour issues in United Kingdom are related with these particular factors as they are the ones
which affect the labour the most.
As per the Neoclassical microeconomic model of demand, the labour is hired by an
organization for maximization of output and thus aiming for the enhancement of the overall level
of profits. According to it, with the application of more units of labour the additional output
which is derived from them starts to decline. The labour issues in United Kingdom are related
with the factors like wage rates not being set according to the demand, wrong assessment of the
demand etc.
According to the Neoclassical microeconomic model of Equilibrium when there is a
match between demand and supply of the labour then this can create an equilibrium in both
short-run and long-run in the market (Schaal, 2017). Thus in the context of labour issues faced in
UK, it is clear that the setting up of equilibrium in the market between the demand and supply of
the labour in the market will help in sorting out the particular problems and issues in a highly
effective manner . Thus it has to be ensured that in the market the equilibrium can be managed
by aiming for higher-level of labour productivity.
Summary: According to the above discussion, it can be summarised that the labour issues can
exist within the economies because of different types of reasons. These can be improper wage
rates, higher work timings etc. By making the use of appropriate Economic methodology and
Economic theory the labour issues can be sorted out without problems and issues. This can be
helpful in the short-run and long-run within the economy because it will ensure that the different
types of labour issues are managed within an appropriate manner in the country. Thus it is quite
important for the labour to ensure that they are able to state their labour issues so that the
appropriate actions regarding the same can be taken. Thus as per the discussion it can be stated
that there are a lot of actions which can be taken for the management of labour issues in the
countries.
CONCLUSION
As per the above report it has been concluded that in present time most of the countries
face many labour issues that impact on the GDP growth and also their development. Presently,
UK face the problem of Unemployment that carried out many problems. After the Corona Virus
most of the countries release their workers due to face financial crisis and it impact on the
economic growth of the country.
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REFERENCES
Books and Journals
Baah-Boateng, W., 2017. Employment and labour market. The Economy of Ghana Sixty Years
after Independence. pp.137-154.
Bogg, A., Dukes, R. and Novitz, T., 2017. Introduction: Contemporary Issues in Collective
Labour Law. Industrial Law Journal. 46(1). pp.1-5.
Bryceson, D. F. and Geenen, S., 2016. Artisanal frontier mining of gold in Africa: Labour
transformation in Tanzania and the Democratic Republic of Congo. African Affairs.
115(459). pp.296-317.
Cubilla‐Montilla, M. and et.al., 2019. Are cultural values sufficient to improve stakeholder
engagement human and labour rights issues?. Corporate Social Responsibility and
Environmental Management. 26(4). pp.938-955.
Christiano, L. J., Eichenbaum, M. S. and Trabandt, M., 2016. Unemployment and business
cycles. Econometrica. 84(4). pp.1523-1569.
Fujita, S. and Moscarini, G., 2017. Recall and unemployment. American Economic Review.
107(12). pp.3875-3916.
Hall, R. E., 2017. High discounts and high unemployment. American Economic Review. 107(2).
pp.305-30.
Schaal, E., 2017. Uncertainty and unemployment. Econometrica. 85(6). pp.1675-1721.
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