In modern Britain, employment remains the main source of material welfare.

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Employment and its relative significance in providing an employee with the necessary income to subsist, as well as providing something of a social status and maintaining his or her psychological well-being has been long established. In modern Britain, employment remains the main source of material welfare, suggesting perhaps that the labour market is more important than the welfare state in determining an individuals' welfare. As a result, such recognition has been a significant influence in welfare reform, the establishment of welfare systems and subsequent policy decisions relating to welfare in general.

Defining unemployment is something of an ambiguous task but one that has to be carried out with heed, after all unemployment tends to seize newspaper headlines as a key issue. The ‘Claimant Count’ is perhaps the most frequently used [official] definition by the government, dependent upon the allocation of the ‘Job Seekers Allowance’ i.e. unemployment benefit. The issue of unemployment after the Second World War was somewhat taken for granted; today however it is recognised as a ‘social problem’ and is considered a central issue to any government campaign.

 Rates of unemployment fluctuate on a daily basis, however some figures representing unemployment remain constant for months even years as the economy is unable to break its unfavourable cycle. There is no solitary vindication for unemployment as patterns of unemployment vary considerably in terms of age, race, gender and geography to name but a few.

 It is argued that there has been and to a certain extent still is, a growing momentum in the requirement of skills asked of applicants when applying for certain positions. Since the 1960’s, the United Kingdom economy has been witness to a progressive decline in manual labour while at the same time, service sector jobs and white-collar work seems to be escalating. Technology is ever progressing and more so, than ever, companies are beginning to use computers and computer application’s to use the time they have more efficiently. There is a causal link between the skill’s required and the skill’s carried by potential employee’s – there exists a mismatch in labour supply and labour demand – the long term unemployed slip behind, eventually lacking even the most basic skill’s required to fill what is seen as a routine and unskilled job e.g. word processing. This is especially so of the elderly, who perhaps have never used a computer before let alone Microsoft Word or Excel. There exists a huge question mark over ‘employability’ for many groups who are unaware of the current trends in technology and skills necessary to employers.

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With the downturn in the manufacturing industry forcing those who predominately made up the workforce i.e. the working class, there was a shift into the service sector or so it was claimed. The service sector, which was once largely made up of semi-skilled jobs witnessed the disappearance of such positions and instead saw what were becoming increasingly skilled managerial and professional positions opening up. A combination of this and a growth in part-time and casual work (driven by increasing competition from overseas) meant that those who had previously worked in the manufacturing industry were either unqualified for such positions (they ...

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