Analysis Of The Article ' The On Liquidation Of Sahaviriya Steel Industries ' Uk Companies '

a) Given that the increase in unemployment means a decrease in real GDP, and that consumer spending and investment spending reductions mean a fall in aggregate demand, the economy is in recession. This is due to a fall in aggregate demand, and the fall in investment may lead to higher costs of production in the future.

The performance of the UK economy depends very much on the level of Aggregate demand within the economy. AD=C+I+G+(X-M). The UK economy can be judged by a number of key indicators mainly sustainable economic growth, low inflation (target 2%), a surplus on the

The organization that is chosen for this assignment is Tata Steel Limited. Tata Steel Limited is a supplementary organization of Tata Group which headquarters in Mumbai, India. Tata Steel Limited specializes in steel making globally. The Tata Steel Limited was founded by Dorabji Tata in 25th August 1907. The organization had been in operation over hundred years since it been firstly founded.

All of these factors have an enormous impact on my selected business (Barclays) as the economy goes from growth and decline. As well as many others, Barclays is majorly affected as it is in the financial industry. These different factors appear throughout what is called the ‘Business Cycle’. The cycle shows the fluctuation of the activity within the economy over a period of time and consists of 4 main stages; as well as many others,

Given the state of the recession and how it might have affected an organisation’s finances, this has a large impact on the employment relationship i.e. due to cuts there be maybe redundancies, therefore leading to loss of jobs.

“Since 2007 to mid 2009, global financial markets and systems have been in the grip of the worst financial crisis since the depression era of the late 1920s. Major Banks in the U.S., the U.K. and Europe have collapsed and been bailed out by state aid”. (Valdez and Molyneux, 2010) Identify the main macroeconomic and microeconomic causes that resulted in the above-mentioned crisis and make an assessment of the success or otherwise of the actions taken by the U.K government to resolve the problem.

Even in spite of the economic recession in 1991, Nucor still appeared to be one of the fastest growing steel companies in America, even considering the spending levels regarding disposable income among Americans. This is especially true since September 11, attacks, because economic levels in America have tended to exhibit a slight disability. After the attacks on 9-11 markets, as well as the overall financial climate of the United States took on immediate hits. Yet, after President Bush’s tax cuts made in 2002, the country rebounded from a mild recession which dated back to the Clinton administration and has since sought to recover. The steel industry worldwide was mired in one of its most unprofitable periods ever when 9-11 hit. The recovery from the recession, as well as an attempt to pull through current financial hard times due to the war in Iraq have added extra strains on Americans and their ability to spend, which in turn affects the steel industry.

Recession causes unemployment, this will affect the demand for goods and Tesco profit will drop.

When governments look at policies to reduce unemployment, they tend to look at the short term and then the long term. In the short term, they need to ensure there is sufficient demand and economic growth in the economy to help control cyclical unemployment. This is done by adopting

The United States is currently experiencing a slow recovery from the recession of 2008-09. The current unemployment rate is 7.7%, which is the lowest level since December of 2008 (BLS, 2012). However, this rate is believed to higher than the rate that would occur if the economy was operating at peak efficiency, and it is also believed that there are structural issues still underpinning this performance. For example, the number of Americans who have exited the work force as the result of prolonged unemployment is believed to be higher than usual. In addition, the Congressional Budget Office (CBO, 2012) notes that long-term unemployment of greater than 26 weeks is at a much higher rate than normal, which will have adverse long-run effects on the economy, since workers with long-term unemployment often find their career paths derailed.

The “Great Recession” is commonly used to explain the massive economic contraction that occurred in the United States during the fourth quarter of 2007. However, the actions of the United States spanned to other nations, leaving massive effect on the global economy. One nation that took on serious financial burden during this recession was the United Kingdom. This nation first faced the effects of the Great Recession beginning in the first quarter of 2008. Overall, the initial mass effects on the nation can be attributed to the nation’s reliance on the financial sector. In fact, after partially stabilizing in 2009, the country struggled with a double-dip recession between 2010-12, and continues to struggle with some of these effects.

Structural unemployment may occur in the short term with the removal of trade barriers. This will have impact on large numbers of workers, as well as their families and local economies. In growth industries workers often will have difficulties to find employment.

As non-European companies raised the standard of competition, the prices likewise fell and the market for many European products collapsed. This directly affected the employment rate throughout Europe in many of the industries, as many jobs were no longer needed. As this need declined, labor began to demand the retention of jobs, wages, and benefits, making labor more costly (Drouin,12). The unemployment rate in Europe went from 4-5% in the 1950-60s to 10-12% during the 1970-80s (Dr. Shearer - lecture). For example, after World War II the mining workforce in the UK fell from 718,000 to 43,000, with the majority of the jobs lost during 1975-85 (Judt, 459). The steel industry also suffered. As non-European countries entered the market, the European steel industry collapsed. For example, British steelworkers lost 166,000 jobs between 1974-1986 (Judt, 459). As unemployment increased throughout Western Europe, there was a movement towards the service sector.

unemployment rate is increasing day by day. With economic crisis in 2008, we met with

Money is essential to any individual looking to have a decent lifestyle; labor is the avenue through which this is acquired. The economy goes through various fluctuations in activity causing unemployment to fall, rise, or level out. What this creates is the first type of unemployment, known as cyclical; frictional is the second type, caused by a temporary leave (for whatever reason) by the employee, and structural is the third type, varying with the economic changes in demand. The absence of unemployment at its maximum level is termed full employment, another version of unemployment. The term encompassing the sum of the frictional, structural, and, yet another type of unemployment, surplus unemployment is that of the natural rate of