1. OECD Labour Market Facts Flashcards
Large stock
The total population of the UK
Working age
Anyone between the age of 16-66
Unemployment rate
Unemployed/ (unemployed+employed)
Labour force participation
The percentage of the working age population that are in work. LFP= E/(E+U+I)
Flows
The movement of people from one “position” to another
ILO unemployment definition
No job, looking for a job, ready to take job
Claimant count unemployment definition
Those claiming and qualifying for unemployment benefits
Facts about unemployment
- 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
What is the current employment rate like?
- At all time high
- Decreasing in men, increasing in women
- Primary + manufacturing falling, construction stable, services increasing
What are inactivity levels currently like?
- All time low
* It mirrors employment
How have wages and inequality changed in the past 20 years?
- Wage growth until 2008. Fall 2008-2013. Real wages still not at 2008 level
- Increase in wage inequality in UK and across OECD
How has productivity performed in the last 20 years
It’s stagnated since 2008
Examples of policies for the labour market
- direct government expenditure
- spending on training and education
- subsidised employment
- unemployment insurance
Examples of institutions for labour market
- minimum wage
- employment protection legislation
- trade unions
- wage bargaining
- taxation
How much money do the UK spend on labour market policies compared to OECD?
UK spend relatively little. Denmark spend most, US spend least
Labour market policies of 1979-97 conservatives
- Employment acts to weaken unions
- Reduction in welfare payments
- Harder to claim unemployment insurance
- Abolished wage councils, firmly against minimum wage
Labour market policies 1997-2010 labour
- The New Deal
- Introduced minimum wage
- Working families tax credit
- Free movement of labour for EU countries
Labour market policies 2010-15 coalition administration
- 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)
Labour market policies 2015-now conservatives
- 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
Effects of coronavirus on labour market
- 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
