What are the main causes of unemployment in the UK? CCEA 2013 Summer paper 2

The definition of unemployment that is used by the UN  is the ILO definition, this covers those that are out of work, want a job, have actively sought work in the previous four weeks and are available to start work within the next fortnight; or out of work and have accepted a job that they are waiting to start in the next fortnight. The most common form of unemployment that affects the UK is cyclical unemployment. This occurs when there is an economic downturn such as a recession. As there is reduced demand for goods and services, firms do not require as many workers to fulfil customer demands and so people are laid off. As more people become unemployed the ability of consumers in general to purchase goods and services is diminished as they may be dependent on social security payments and saving and thus reduce consumption. A cause of unemployment which affects Northern Ireland, in particular, is structural unemployment, where an economy moves away from one industry ( in Northern Ireland's case shipbuilding) and towards another such as tourism.There are few transferable skills and so this leaves a large number of people unable to find work in the new sector. The third cause of unemployment is voluntary, some people may choose not to work for reasons such as caring for a relative, minding children or simply the cost of commuting to a place of work makes it not worthwhile to take a job.

CT
Answered by Cameron T. Economics tutor

14606 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What's the difference between movements along and shifts in the demand curve?


How can changes to taxes cause a reduction in the public deficit?


A football club raises all stadium seat prices by 5%. The demand for seats falls by 1% in zone W, by 3% in zone X, by 5% in zone Y and by 6% in zone Z. In which zone is the responsiveness of demand for seats to the price change elastic?


Explain why the UK have different minimum wage rates for different age groups


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning