History of Structural Unemployment in the UK Flashcards
What economic model characterised the Post-War Era?
Keynesian economic model
The Keynesian model emphasizes the role of government intervention and aggregate demand in the economy.
What were the key features of the Post-War reconstruction?
High public spending and nationalisation
Nationalisation included sectors like coal, steel, and railways.
What was the demand for labor in the Post-War Era?
Strong demand for workers in manufacturing and public sector industries
This demand was supported by the Keynesian economic policies.
What role did trade unions play in the labor market during this period?
Provided job security and wage stability
Trade unions were crucial in negotiating better conditions for workers.
What was the technological state of the labor market in the Post-War Era?
Slow technological change meant minimal structural unemployment
This stability contributed to job security for workers.
What sectors did the economy depend on in the Post-War Era?
Coal, shipbuilding, steel, and textiles
These sectors were foundational for economic activity during this time.
What were the underlying issues in the industrial composition during the Post-War Era?
Outdated technology and low productivity
These issues hindered growth and competitiveness.
How did global competition affect the Post-War economy?
Increasing global competition was masked by government intervention
Government policies aimed to protect domestic industries from foreign competition.
What economic phenomenon resulted from the 1973 and 1979 oil shocks?
Stagflation (high inflation + stagnant growth)
Stagflation was a significant economic issue during the 1970s, combining rising prices with stagnant economic growth.
Which countries posed global competition to manufacturing in the 1970s and 1980s?
Germany and Japan
The rise of these economies contributed to challenges faced by manufacturing industries in other countries.
What effect did mechanisation have on industrial labor demand?
Reduced demand for low-skilled industrial labour
Mechanisation led to increased efficiency but decreased the need for human labor in certain sectors.
What economic policies characterized Thatcherism from 1979 to 1990?
- Privatisation of industries
- Deregulation
- Monetarist policies to curb inflation
These policies aimed to revitalize the economy but also led to significant changes in the labor market.
What industries were primarily privatised under Thatcherism?
- Coal
- Steel
- Automotive
- Shipbuilding
The privatisation of these industries marked a significant shift in economic policy and ownership.
What was a significant consequence of the 1984–85 Miners’ Strike?
Decline of coal mining, leading to long-term unemployment
The strike was pivotal in changing the landscape of the coal industry and employment in the UK.
What issue did workers face due to a skills mismatch in the 1980s?
Workers had skills in declining industries, with little government retraining support
This mismatch contributed to structural unemployment as industries changed or disappeared.
What was the primary economic shift in the UK during the 1990s to 2008?
Transition from manufacturing to a service-based economy
This included growth in financial services, retail, and digital industries.
What sectors experienced growth in the UK during the shift to a service-based economy?
- Financial services
- Retail
- Digital industries
These sectors replaced traditional blue-collar jobs.
What was the impact of the economic shift on blue-collar jobs?
Decline in blue-collar jobs, replaced by knowledge-based employment
This shift contributed to structural changes in the workforce.
What are the key characteristics of the North-South divide in the UK during this period?
- Structural unemployment in former industrial areas
- Boom in London & South East due to financialisation
- Struggles in the North, Midlands, Wales with fewer high-skill job opportunities
This divide highlighted regional disparities in job availability.
What phenomenon characterized the labor market flexibility in the 1990s to 2008?
Rise of the gig economy
This included part-time jobs, zero-hours contracts, and outsourcing.
What is skill mismatch in the context of the labor market during this period?
Many unskilled/semi-skilled workers found stable jobs scarce
This mismatch was exacerbated by the education system’s struggle to adapt to labor market shifts.
True or False: The education system successfully adapted to the changes in the labor market during the 1990s to 2008.
False
The education system struggled to keep pace with the evolving job market.
Fill in the blank: The UK saw a significant decline in _______ jobs during the transition to a service economy.
blue-collar
This decline was accompanied by an increase in knowledge-based employment.
What was a major impact of the 2008 Financial Crisis?
Mass layoffs in finance, construction, and retail.
The crisis led to significant job losses across various sectors.
What key problem did low-skilled workers face during the 2008 Financial Crisis?
Struggled due to offshoring and automation.
Many low-skilled jobs were moved overseas or replaced by technology.
What demographic experienced a surge in unemployment due to mismatched skills during the 2008 Financial Crisis?
Youth.
Young workers found it increasingly difficult to find jobs that matched their skills.
What does the term ‘Fourth Industrial Revolution’ refer to?
Automation, AI, and their impact on the labor market.
This revolution is characterized by the integration of digital technologies into everyday life.
Which types of jobs are being increasingly replaced by AI-driven systems?
Routine jobs (e.g., admin work).
AI systems are automating tasks traditionally done by humans.
What sectors experienced labor shortages due to Brexit?
Healthcare, hospitality, and logistics.
Brexit led to changes in labor availability in these critical sectors.
What paradox is associated with structural unemployment during Brexit?
Some sectors lacked workers, others had a surplus.
This highlights the mismatch between available jobs and the workforce.
What was a significant effect of COVID-19 on the labor market?
Acceleration of digitalisation.
The pandemic pushed many companies to adopt remote working and digital tools.
Which group of employees benefited from the shift to remote work during COVID-19?
High-skilled employees.
Those with advanced skills were more likely to adapt to remote work settings.
What type of jobs suffered more redundancies during COVID-19?
Low-skilled service jobs.
Many low-skilled positions were deemed non-essential during the pandemic.
What long-term effect did COVID-19 have on low-skilled workers?
Higher long-term unemployment.
Many low-skilled workers faced prolonged periods without employment.
What were the key developments in education and training from the 1960s to the present?
1960s–1970s: Expansion of technical colleges and polytechnics
1980s–1990s: Youth Training Schemes (YTS) (limited success)
2000s–Present: Apprenticeships, Lifetime Skills Guarantee
This highlights the evolution of educational responses to structural unemployment.
What was the focus of New Labour’s ‘New Deal’ in the 1990s–2000s?
Focus on reskilling
This initiative aimed to help unemployed individuals gain new skills for the labor market.
What is the purpose of Universal Credit introduced in the 2010s–2020s?
To provide financial support and incentives for work
Universal Credit aims to simplify the benefits system and encourage employment.
Fill in the blank: The 1980s–2000s saw the establishment of _______ aimed at attracting investment.
[Enterprise Zones]
Enterprise Zones were designed to stimulate economic activity in specific areas.
What are the current focuses of industrial strategy and regional development since 2017?
Focus on R&D, green jobs, and levelling up
This reflects the aim to promote sustainable economic growth and reduce regional disparities.
True or False: Youth Training Schemes (YTS) in the 1980s–1990s were highly successful.
False
The YTS had limited success in addressing structural unemployment.
What has been a recent initiative to enhance skills in the workforce?
Lifetime Skills Guarantee
This initiative aims to provide individuals with opportunities to acquire new skills throughout their lives.
What does the term ‘levelling up’ refer to in the context of UK policy?
Efforts to reduce regional inequalities
‘Levelling up’ aims to ensure that all regions of the UK have equal opportunities for economic growth.
What is one key challenge related to structural unemployment in the UK?
Digital Divide: AI and automation threaten low-skilled jobs.
This refers to the gap between those who have access to digital technologies and those who do not, impacting job opportunities.
What challenge does the Green Transition present for employment in the UK?
Job losses in energy industries, requiring large-scale retraining.
The shift towards greener energy sources may lead to job reductions in traditional fossil fuel sectors.
What is a significant aspect of regional inequality in the UK?
Persistent North-South divide.
This refers to the economic disparity between the more prosperous South of England and the less prosperous North.
What is a policy recommendation to address structural unemployment?
Invest in Lifelong Learning: Expand access to vocational training and digital skills.
This approach aims to ensure that workers can continuously update their skills throughout their careers.
What does Industrial Policy 2.0 aim to support?
Support high-value industries (AI, biotech) and aid displaced workers.
This policy framework is designed to foster innovation and assist workers who lose jobs due to industry changes.
What is a recommendation to reduce regional disparities in the UK?
More investment in infrastructure, digital connectivity, and education.
Enhancing these areas can help create more equitable opportunities across different regions.
What is structural unemployment?
A persistent challenge in the UK shaped by various factors
Structural unemployment occurs when there is a mismatch between the skills of the workforce and the needs of the job market.
What factors have shaped structural unemployment in the UK?
Deindustrialisation, technological change, shifting global dynamics
These factors contribute to changes in the labor market and the types of jobs available.
What are key solutions to address structural unemployment?
Reskilling, regional investment, industrial policy reform
These solutions aim to enhance the employability of workers and stimulate economic growth in affected regions.
What does future resilience in the UK depend on?
The ability to adapt to digitalisation, automation, economic change
Adapting to these trends is crucial for maintaining a competitive workforce and economy.
