Comparing Structural Unemployment Across UK Recessions Flashcards
What economic policies drove the Early 1980s Recession?
Monetarist policies (high interest rates, tight money supply)
These policies aimed to control inflation but led to significant economic contraction.
Which sectors suffered mass closures during the Early 1980s Recession?
Manufacturing and heavy industry
Key sectors included coal, steel, shipbuilding, and textiles.
What was the peak unemployment rate in the UK during the Early 1980s Recession?
3.2 million (12%) in 1983
This represented a significant increase in unemployment during the recession.
In which regions of the UK did permanent job losses occur due to deindustrialisation?
North, Midlands, South Wales, Scotland
These areas were heavily reliant on manufacturing industries that faced closures.
What type of unemployment persisted after the recovery from the Early 1980s Recession?
Structural unemployment
This was due to a mismatch between skills and job availability, as new jobs were mainly in services.
Fill in the blank: The Early 1980s Recession was characterized by a collapse in _______.
[manufacturing]
The recession had a profound impact on the manufacturing sector.
True or False: The Early 1980s Recession led to job growth in the manufacturing sector.
False
The recession resulted in mass closures and job losses in manufacturing.
What was a significant effect of globalisation during the Early 1980s Recession?
Contributed to manufacturing collapse
Globalisation increased competition and led to the decline of domestic manufacturing.
What were the main causes of the Early 1990s Recession (1990–1993)?
High interest rates, collapse of the late 1980s housing bubble, reduced business investment
These factors significantly impacted economic performance during this period.
How did the manufacturing sector perform during the Early 1990s Recession?
Manufacturing continued to shrink
This decline was a key characteristic of the recession.
Which sectors showed resilience during the Early 1990s Recession?
Service industries, particularly retail and finance
These sectors were less affected compared to manufacturing.
What was the unemployment rate in 1993 during the Early 1990s Recession?
10.7%
This represented approximately 3 million unemployed individuals.
Which regions were hit hardest by unemployment during the Early 1990s Recession?
North and Midlands
These areas experienced more severe economic challenges.
Which region recovered faster from the Early 1990s Recession?
The South, particularly London
Recovery was driven by growth in financial services.
Fill in the blank: The Early 1990s Recession was characterized by a _______ in manufacturing.
shrinkage
This reflects the decline in the manufacturing sector during the recession.
What triggered the 2008–09 Financial Crisis?
The collapse of global banking, including Lehman Brothers, Northern Rock, and RBS bailouts.
Which sectors experienced the sharpest decline during the 2008–09 Financial Crisis?
Financial services and high-end business sectors.
How did the decline of manufacturing during the 2008–09 Financial Crisis compare to previous recessions?
Manufacturing shrank, but its decline was less severe than in the 1980s/90s due to its already diminished role in the economy.
What was the peak unemployment rate during the 2008–09 Financial Crisis?
2.7 million (8.5%) in 2011.
What major issue arose from the long-term effects of the 2008–09 Financial Crisis?
Long-term youth unemployment.
Which regions were more affected by the 2008–09 Financial Crisis?
The South East and London.
How did deindustrialised regions fare during the 2008–09 Financial Crisis?
They saw only marginal additional job losses, having already experienced long-term unemployment.
What type of unemployment was concentrated in former industrial heartlands during the 1980s and 1990s recessions?
Structural unemployment
This was largely due to deindustrialisation.
Which sectors were more impacted during the 2008–09 recession?
Service-based sectors
This includes finance, banking, law, and business services.
What area experienced greater job losses during the 2008–09 recession?
London and the South East
These regions were significantly affected by the recession.
What ongoing trend is observed in former industrial areas?
High structural unemployment
This is due to the long-term decline of manufacturing and lack of high-skill job opportunities.
