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Describe the main changes in unemployment between 1989 and 1999 as shown in Table 2.

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Introduction

AS Question on Unemployment (a) Describe the main changes in unemployment between 1989 and 1999 as shown in Table 2. (5 marks) The percentage of unemployment in the labour force decreases by 0.4% from 1989 to 1990 but the following year sharply increases by 2.2%. Unemployment carries on to increase for a further two years until it reaches an all time high in the decade of 10.3% in 1993. Unemployment decreases from 1993 to 1999 with a total decrease of 6% to 4.3% with a sharp decrease between 1996 and 1995 of 1.8%. Overall we can see that throughout the decade unemployment sharply rose over three years and then steadily fell for six years resulting in a lower unemployment percentage in 1999 than in 1989 and any other year in the period. (b)(i) Explain why unemployment is likely to vary with fluctuations in aggregate demand. (4 marks) Fluctuations in aggregate demand will cause unemployment. Unemployment that occurs due to fluctuations in aggregate demand is called cyclical unemployment. Cyclical unemployment will occur when aggregate demand (D2) ...read more.

Middle

Another type of structural unemployment is international unemployment where workers lose their jobs due to a fall in demand in domestically produced goods. The final type of structural unemployment is technological unemployment, where workers lose their jobs due to the introduction of new technology. Another possible cause of unemployment is seasonal unemployment, where workers are only needed to work in a certain period or periods of the year. This unemployment particularly happens in the farming industry and tourism industry where some farm workers are only needed at harvest and the reduction in tourism in the winter causes people to be unemployed. Therefore if the UK had a large farming industry or a large tourism industry they may find large unemployment levels at the certain periods of the year. (c) Discuss the policies the government should adopt if it wishes to achieve a low level of unemployment. (20 marks) There are many polices that the government can adopt to achieve low unemployment. These policies depend on the government's view of how unemployment should be handled and which type of unemployment is occurring in the UK. ...read more.

Conclusion

This is because the left wing approach will achieve the creation of jobs immediately. If the unemployment present is structural unemployment, then again the government can use two different policies to achieve low levels of unemployment. The left wing policy would be (see Ex book) The other policy to achieve low levels of unemployment, the more right-wing approach, is to encourage the unemployed to work. To do the government will again not get directly involved in getting the unemployed to work but will encourage the unemployed to be retrained in other industry or move geographically to acquire a new job. If the unemployment present in the UK was residual unemployment, then the government could use two different policies to achieve low levels of unemployment. The left wing policy would be Finally, if the unemployment present was seasonal unemployment, then again the government could use two different policies to achieve low levels of unemployment. The left wing policy would be] Overall, I believe that the left wing policies are better at achieving low levels of unemployment than the right wing policies. Option D Robert Catherall 12PE Mr Dorran Economics October 2002 ...read more.

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