UK unemployment flat as wage growth drives inflation worries The U.K. unemployment rate remained flat at 4.1% in the last quarter of 2021 and likely declined in January, data by the Office for National Statistics showed. The information also confirmed that fewer Britons are working than before the pandemic. Although the number of employees on payrolls rose in January and now tops pre-pandemic levels, "the number of people in employment overall is well below where it was before COVID-19 hit," said ONS head of economic statistics, Sam Beckett. "This is because there are now far fewer self- employed people." Around 400,000 people, mostly over the age of 50, "have disengaged from the world of work altogether and are neither working nor looking for a job," he said, with the data pointing to an increase in long-term illness, among other factors. Source: Politico.eu (adapted extract) - February 2022 (a) Explain the term unemployment. (b) Explain using a diagram the likely effects on the UK economy if the number of people in employment overall stays below pre-pandemic levels. (c) Analyse TWO possible causes of unemployment. (d) Evaluate the possible consequences of rising numbers of people over the age of 50 who are neither working nor looking for a job.
UK unemployment flat as wage growth drives inflation worries The U.K. unemployment rate remained flat at 4.1% in the last quarter of 2021 and likely declined in January, data by the Office for National Statistics showed. The information also confirmed that fewer Britons are working than before the pandemic. Although the number of employees on payrolls rose in January and now tops pre-pandemic levels, "the number of people in employment overall is well below where it was before COVID-19 hit," said ONS head of economic statistics, Sam Beckett. "This is because there are now far fewer self- employed people." Around 400,000 people, mostly over the age of 50, "have disengaged from the world of work altogether and are neither working nor looking for a job," he said, with the data pointing to an increase in long-term illness, among other factors. Source: Politico.eu (adapted extract) - February 2022 (a) Explain the term unemployment. (b) Explain using a diagram the likely effects on the UK economy if the number of people in employment overall stays below pre-pandemic levels. (c) Analyse TWO possible causes of unemployment. (d) Evaluate the possible consequences of rising numbers of people over the age of 50 who are neither working nor looking for a job.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter21: Unemployment
Section: Chapter Questions
Problem 16RQ: Assess whether the following would be counted as unemployed in the Current Employment Statistics...
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Transcribed Image Text:Question 22:
UK unemployment
flat as wage growth drives inflation worries
The U.K. unemployment rate remained flat at 4.1% in the last quarter of
2021 and likely declined in January, data by the Office for National Statistics
showed.
The information also confirmed that fewer Britons are working than before
the pandemic.
Although the number of employees on payrolls rose in January and now tops
pre-pandemic levels, "the number of people in employment overall is well
below where it was before COVID-19 hit," said ONS head of economic
statistics, Sam Beckett. "This is because there are now far fewer self-
employed people."
Around 400,000 people, mostly over the age of 50, "have disengaged from
the world of work altogether and are neither working nor looking for a job,"
he said, with the data pointing to an increase in long-term illness, among
other factors.
Source: Politico.eu (adapted extract) - February 2022
(a) Explain the term unemployment.
(b)
Explain using a diagram the likely effects on the UK economy if the
number of people in employment overall stays below pre-pandemic
levels.
(c) Analyse TWO possible causes of unemployment.
(d)
Evaluate the possible consequences of rising numbers of people over
the age of 50 who are neither working nor looking for a job.
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