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whay will happen to unemployment in the uk for 2009

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Introduction

What will happen to unemployment in the UK for 2009? Unemployment is the amount of individuals that are actively seeking jobs remain unemployed. The level of unemployment varies depending on the current economic condition and other variables. A high level of unemployment may cause high opportunity costs as it is waste of resources; this also induces social costs into the society such as businesses will experience lower sales, the government will need to increase its spending to try and increase the amount of available jobs, and it wastes a business's investment into training workers as when people are unemployed for a large amount of time they become deskilled. The economy loses the output that could potentially be created, lowering the GDP rate (gross domestic product). Unemployment reduces tax revenue as people who are working have taxes deducted from their pay, therefore a rise in unemployment decreases government spending as unemployment benefits are being paid and the government will have to decrease spending or increase the average tax rate. Unemployment leads to social exclusion as people are alienated from the social world costs will increase in terms of social services and health benefits. Unemployment has risen as the recession has gotten worse the rate of unemployment is currently at 8.2% at the north east and nationally at 6.1% in the UK. ...read more.

Middle

into our economy, so as the pound gets stronger aggregate demand will decrease which also reduces the rate of inflation A fiscal policy involves the use of government spending, taxation and borrowing to reduce the rate of inflation, it helps improve economic growth in a period of recession, and it basically helps stabilise the financial state of the economy. The disadvantages of fiscal policies are that increasing taxes may create a disincentive to work, this will create a fall in productivity and aggregate supply may fall. Government spending will be reduced to increase aggregate demand may negatively effect public services for example public transport or education. It may cause a higher budget deficit as it will need higher taxes which may decrease the size of the private sector, this will cause aggregate demand to increase very slowly or not at all. The benefits to a fiscal policy include capital spending, if capital spending is increased on the the national infrastructure, it may attract tourists resulting in injections into the economy. Another benefit is that government spending may be used on developing new businesses, this will increase competition, also investing in infant industries could benefit the consumer as it will force businesses to become more innovative and invest in research and development to create a cost advantage to other businesses. ...read more.

Conclusion

As you can see it has increased dramatically by roughly 1.5% of the UK's population. This is abviously because of the recession. If it continues the circle of decline demonstrates what is happening. As companies go out of business, it will lead to more job losses, which will decrease a consumers spending, as consumers become more price sensitive it will decrease more businesses profits and then they have to leave the market and so on. So in conclusion as the economy gets worse unemployment will increase in 2009 as incomes decrease. However stores that sell luxury products will be worse off as they will lose the most consumers to industries that sell inferior goods. http://tutor2u.net/ http://www.investorwords.com/5838/unemployment.html http://www.necb.org/data/files/module-4-2-enq-1-201589.pdf http://www.bized.co.uk http://www.economicshelp.org/macroeconomics/fiscal-policy/uk-fiscal-policy.html 1. how secure do you feel in your current employment? 2. do you think the government is doing enough to secure jobs 3. do you expect the national rate for unemployment to increase in the short term 4. what do you think the government should do to help the unemployed 5. have you considered retraining to help secure your employment 6. do you think the government should do more to help those who wish to retrain ?? ?? ?? ?? Page 1 Melanie smith ...read more.

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