1
Adm no:
Economics For Business
MOD003327
Word Count: 2514
, 2
Adm no:
Task 1: Discuss the unemployment rate in the UK and how it compares to two other OECD
countries of your choice.
Introduction
The unemployment rate is defined by the International Labour Organization to be a percentage of
people who do not have work, are available to work, and are actively looking for a job
placement. A report released by the Office of National Statistics (2024) stated that the
unemployment rate in the UK was at 4.2%. This percentage included young adults above 16
years who are actively looking for a job and are ready to report anytime. While one may argue
that the 4.2% unemployment rate shows that the economy is stable, research shows that there are
many challenges that a country experiences in the labour market. Krugman & Wells (2020) note
that a high unemployment rate is an indication that the country's economic health and labour
market are performing poorly. This 4.2% can be attributed to the COVID-19 pandemic and the
2008 global financial crisis, but the government has employed support systems to help lower this
rate (ONS, 2023). The health, education information, technology, and communication sectors
have shown improvement with increased employment due to the government's support. Also, in
the UK, there are regional disparities in unemployment, where London and the South East have
the lowest unemployment rates while the North East has the highest rate. In London and the
South East, many economic activities are going on, which creates job opportunities compared to
the North. Also, the level of investment and education is higher compared to the North East
(ONS, 2024). To address these unemployment rates, this structural disparity must be addressed.
Adm no:
Economics For Business
MOD003327
Word Count: 2514
, 2
Adm no:
Task 1: Discuss the unemployment rate in the UK and how it compares to two other OECD
countries of your choice.
Introduction
The unemployment rate is defined by the International Labour Organization to be a percentage of
people who do not have work, are available to work, and are actively looking for a job
placement. A report released by the Office of National Statistics (2024) stated that the
unemployment rate in the UK was at 4.2%. This percentage included young adults above 16
years who are actively looking for a job and are ready to report anytime. While one may argue
that the 4.2% unemployment rate shows that the economy is stable, research shows that there are
many challenges that a country experiences in the labour market. Krugman & Wells (2020) note
that a high unemployment rate is an indication that the country's economic health and labour
market are performing poorly. This 4.2% can be attributed to the COVID-19 pandemic and the
2008 global financial crisis, but the government has employed support systems to help lower this
rate (ONS, 2023). The health, education information, technology, and communication sectors
have shown improvement with increased employment due to the government's support. Also, in
the UK, there are regional disparities in unemployment, where London and the South East have
the lowest unemployment rates while the North East has the highest rate. In London and the
South East, many economic activities are going on, which creates job opportunities compared to
the North. Also, the level of investment and education is higher compared to the North East
(ONS, 2024). To address these unemployment rates, this structural disparity must be addressed.
