UK Economic Policies

1090 Words Jan 14th, 2018 4 Pages
This should include the figures for unemployment, inflation and economic growth.

The unemployment rate is a good indicator of the overall economic health of a country. When unemployment is high this generally indicates a weakened economy with many people out of work. Unemployment is also related to the inflation rate. When inflation is high then unemployment is typically lower because more people have to work since the money they have is worth less. When inflation is lower then people have less of an incentive to trade their labor if they already have some wealth accumulated. However, there are also exceptions to this trend. Currently in the UK the inflation rate is slightly over seven percent (7.2%) which is relatively high (Office for National Statistics, 2012).
The rate was even higher in previous years due to the recession and therefore it has made progress. However, there are far more part time workers now than there were previously. More people have been forced to leave a full-time position and accept part time work because companies have downsized their work force due to the falling demand caused by the recession. Many companies will move people from full-time to part time to save on their payroll expenses. Therefore the actual unemployment rate may not fully represent the state of the economy since there are…