Unemployment/Changes in UK labour market

Question 1

What are the major changes experienced in the UK labour market recently?

Answer 1

Question 2

A quick list of policies to reduce unemployment:

Answer 2

Monetary policy – cutting interest rates to boost Aggregate Demand (AD)

Fiscal policy – cutting taxes to boost AD.

Education and training to help reduce structural unemployment.

Geographical subsidies to encourage firms to invest in depressed areas.

Lower minimum wage to reduce real wage unemployment.

More flexible labour markets, to make it easier to hire and fire workers