whay will happen to unemployment in the uk for 2009

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Melanie smith

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. As businesses become insolvent unemployment will rise., the number of people that are unemployed is about 2 million and it is predicted that these figures will rise as we go deeper into the recession.

I created a questionnaire and asked 10 people to answer it, to find out how people feel about the stability of the economy and how it affects them. The questions included:

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

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6. do you think the government should do more to help those who wish to retrain

                                

My results show that people are insecure about the stability of their economy and that the government could do more to make it more stable and increase employment, and the major thing it could do would be to increase the amount of available jobs to the economy.

 The government may try to reduce unemployment by using fiscal, monetary and supply side policies. Monetary policy is where the bank of England controls the amount of money available to the country by ...

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