Thursday, 7 February 2013

The UK Unemployment Mystery

A strange feature of the past two years, has been a largely unexpected fall in UK unemployment. Recently, the ONS said there were 2.49 million people unemployed,  185,000 less than on a year earlier. It is the lowest unemployment rate since spring 2011. Usually, in a recession, you would expect a rise in unemployment because falling demand causes firms to get rid of surplus workers. (see: demand deficient unemployment)

http://www.economicshelp.org/blog/6744/unemployment/the-uk-unemployment-mystery/