Exploring Structural Change in Uk Economy and Labour Market Inequality in London

6203 Words Jul 2nd, 2013 25 Pages
MA Human Resources and Employment Management

Assignment 1
Exploring Structural Change in the UK Economy and the Extent of Labour Market Inequality Within London: Implications for the HR Function and HR Practitioners

Word Count: 4,455 words (main body of assignment)

Contents
How the structure of the UK economy has evolved and changed since the 1970’s, the impact on organisations and HR functions 3
Overview of key factors responsible for structural change 3
Impact on the external labour market, the employment relationship, the psychological contract and the policies and practices of HR departments 4
Challenges the 2008 recession has brought for organisations and how organisations and HR departments have responded 6
Analyse
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Edwards & Wajcman (2005) describe globalization to be a process of increasing economic integration of national economic systems. This has benefited and negatively impacted the UK economy. World Bank figures report globalized economies benefit from higher GDP. On the other hand, the connectedness of the UK economy puts it as risk. The first global economic crisis was triggered by the Yom Kippur War, followed by the collapse of the Japanese economy and dot-com bubble burst led to a global recession (Robinson 2006). These events were later dwarfed by the global financial crisis in 2008, from which the UK economy is still struggling to recover.

Impact on the external labour market, the employment relationship, the psychological contract and the policies and practices of HR departments
Labour Market: Kew & Stredwick (2010) note a feminisation of the workplace with female participation rates increasing from 33 % in 1951 to 70 % in 2008. Giddens (2006) attributes this to three key reasons; changes to family life, financial pressures and personal fulfillment.
Demographic changes have also resulted in an ageing population coupled with a reduction in UK birth rates. (Chamerlin 2011) The resulting gaps in employment have been filled by migrant workers, due to the improved mobility of labour afforded by Britain’s membership to the EU and globalisation.
Employment Relationship: Economic structural shifts have led to a shift in occupational…