Issues Of Unemployment

Question 1

How did thatcher see unemployment?

Answer 1

-no longer main aim or gov
-due to control of inflation key econ threat to Br econ + so main aim to solve

Question 2

What happened to Br industry?

Answer 2

-Br Ind has to be prepared be more competitive
-if this led to rise in unemployment then that was accepted

Question 3

What was the impact of monetarist econ policies?

Answer 3

-was drastic
-many Ind plants permanently closed down
-worst hit areas were midlands, the north, central Scotland + south wales
-commentaries described it as ‘deindustrialisation of Br’

Question 4

What was the consequence?

Answer 4

-manufacturing output fell by 15% in 2 years
-West Midlands production fell by 1/4, steel production cut 30% to led than 14m tons

Question 5

How did this impact unemploymentment?

Answer 5

-rose to over 3m by 1983 — highest in post war period
-13.5% of total workforce

Question 6

What gov policies were imposed to combat this?

Answer 6

-youth employment schemes created where employers received a subsidy to take young people one
-employer national insurance rates reduced for lower paid jobs

Question 7

What happened with the gov despite this?

Answer 7

-gov remained firm in conviction controlling inflation more important than controlling unemployment

Question 8

What happened to areas dependent on heavy industry + manufacturing?

Answer 8

-areas dependent on heavy Ind like Liverpool saw employment rate as high as 25%
-far fewer people being employed in manufacturing Ind + workers found their traditional skilled not demanded as rendered out of date by mechanisation

Question 9

What was the impact of the economic realignment towards service inds?

Answer 9

-meant men hit harder than women
-in many homes women became main breadwinners