1. OECD Labour Market Facts

Question 1

Large stock

Answer 1

The total population of the UK

Question 2

Working age

Answer 2

Anyone between the age of 16-66

Question 3

Unemployment rate

Answer 3

Unemployed/ (unemployed+employed)

Question 4

Labour force participation

Answer 4

The percentage of the working age population that are in work. LFP= E/(E+U+I)

Question 5

Flows

Answer 5

The movement of people from one “position” to another

Question 6

ILO unemployment definition

Answer 6

No job, looking for a job, ready to take job

Question 7

Claimant count unemployment definition

Answer 7

Those claiming and qualifying for unemployment benefits

Question 8

Facts about unemployment

Answer 8

• the majority have been unemployed for less than 6 months
• more men than women
• those with no qualifications are more likely to be unemployed, less obvious with women

Question 9

What is the current employment rate like?

Answer 9

• At all time high
• Decreasing in men, increasing in women
• Primary + manufacturing falling, construction stable, services increasing

Question 10

What are inactivity levels currently like?

Answer 10

• All time low

* It mirrors employment

Question 11

How have wages and inequality changed in the past 20 years?

Answer 11

• Wage growth until 2008. Fall 2008-2013. Real wages still not at 2008 level
• Increase in wage inequality in UK and across OECD

Question 12

How has productivity performed in the last 20 years

Answer 12

It’s stagnated since 2008

Question 13

Examples of policies for the labour market

Answer 13

• direct government expenditure
• spending on training and education
• subsidised employment
• unemployment insurance

Question 14

Examples of institutions for labour market

Answer 14

• minimum wage
• employment protection legislation
• trade unions
• wage bargaining
• taxation

Question 15

How much money do the UK spend on labour market policies compared to OECD?

Answer 15

UK spend relatively little. Denmark spend most, US spend least

Question 16

Labour market policies of 1979-97 conservatives

Answer 16

• Employment acts to weaken unions
• Reduction in welfare payments
• Harder to claim unemployment insurance
• Abolished wage councils, firmly against minimum wage

Question 17

Labour market policies 1997-2010 labour

Answer 17

• The New Deal
• Introduced minimum wage
• Working families tax credit
• Free movement of labour for EU countries

Question 18

Labour market policies 2010-15 coalition administration

Answer 18

• Attempt to reform many of the in work benefits such as tax credits
• Welfare Reform Act 2012
• Universal Credit
• Less acceptance of free movement of labour (Migration Advisory Committee)

Question 19

Labour market policies 2015-now conservatives

Answer 19

• Strong support for living wage
• Attempt to simplify tax and benefits system
• Reduction in welfare benefits
• Removal of tax credits
• Brexit may have big impact on free movement of labour

Question 20

Effects of coronavirus on labour market

Answer 20

• Negative demand for labour on aggravate but not for all firms
• Unprecedented intervention Job Retention Scheme
• 1/5 of working age are furloughed, no significant unemployment
• Large drop in hours of work