Employment & unemployment

The UK’s labour force inactivity rate was 20.2% in January 2020 and increased to 21.5% in January 2022.

After an increase in the early stages of the global health crisis, most developed countries have recorded a decrease in the inactivity rate back to, and below, levels in 2019. This is not the case in the UK.

(Source adapted from: https://www.theguardian.com/business/2023/apr/13/ uk‑worst‑performer‑g7‑workforce‑participation‑since‑covid; tradingeconomics.com)

The total UK labour force in January 2022 was 34.5 million. With reference to the information above, calculate the total number of inactive people in the UK labour force in January 2022.

Explain one likely reason for the high levels of inactivity in the UK labour force.

Which one of the following would be the most likely result of an increase in the rate of employment ?

UK unemployment rate (%), December 2020 – June 2022

(Source: adapted from https://www.ons.gov.uk/employmentandlabourmarket/ peopleinwork/employmentandemployeetypes/bulletins/employmentintheuk/august2022)

With reference to the chart, which one of the following is true?

The unemployment rate:

December 2021

With reference to the chart on the previous page, explain one likely reason for the change in the UK’s rate of unemployment.

Explain one reason why a country such as Germany wants to avoid an increase in the national debt relative to GDP (Figure 2).

Examine two likely effects of the forecast change in the rate of unemployment between 2019 to 2020, on firms in Germany. Refer to Figure 4 in your answer.

Discuss the likely impact of investment in new technology on the profitability of firms in Germany, as described in Extract C line 20. Use a cost and revenue diagram to support your answer.

EITHER

Evaluate the microeconomic and macroeconomic factors which are likely to determine the level of economic growth in Germany relative to other developed economies.

Evaluate the microeconomic and macroeconomic impacts of ‘a much more expansionary fiscal policy’ (Extract C line 23) on the German economy.

Write your answer here:

Number of unemployed persons, UK, as measured by the claimant count, thousands

O Oc tc Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2 2 0 0 1 1 7 7 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 2018

(Source: https://tradingeconomics.com/united‑kingdom/unemployed‑persons)

Calculate the percentage change in the number of UK unemployed persons between April and July 2018. You are advised to show your working.

Explain one likely reason for the increase in the number of people unemployed in the UK over the time period shown.

Which one of the following types of unemployment is most likely to be caused by a technological change in an industry?

Number of unemployed persons, UK, as measured by the claimant count, thousands

O Oc tc Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2 2 0 0 1 1 7 7 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 2018

(Source: https://tradingeconomics.com/united‑kingdom/unemployed‑persons)

Calculate the percentage change in the number of UK unemployed persons between April and July 2018. You are advised to show your working.

Explain one likely reason for the increase in the number of people unemployed in the UK over the time period shown.

Which one of the following types of unemployment is most likely to be caused by a technological change in an industry?

Which one of the following types of unemployment best explains the change in the data between 2008 and 2010?

Explain the likely effects on the circular flow of income of the change in unemployment between 2013 and 2015.