Unemployment: Economics and Higher Death Rates

Topics: Economics, Unemployment, Monetary policy Pages: 4 (1091 words) Published: April 24, 2013
Causes of Unemployment in United Kingdom
Nowadays the rate of unemployment is increasing significantly all over the world, especially among young people. This happening influences the economy of a particular country as well. United Kingdom, USA, Greece and a range of other developed or developing countries can be examples of economical fall. On the one side, young specialists who live in UK are unemployed losing their skills which are vitally important for them in order to apply to the job. As the economy of a country depends on its specialists, the government should take right actions to decrease the rate of unemployment. According to the team of academics economically active people became unemployed because of three very essential concepts: inflation, poor psychological health and recession. The first important cause of unemployment in the UK is inflation. Inflation is one of the oldest causes of unemployment. A state's economy faces a steep rise in prices as compared to other economies of the world. This leads to failure in exports as companies are not able to compete with others due to rise in price. Incomes suffer, people's savings fall and gradually companies start firing people, being unable to pay them on due time. Thus, the rate of unemployment increases. There are some types of inflation such as unexpected or uncertain inflation. For instance, history monitories that in the early 1930s, over a quarter of the UK labor force was unemployed. Government’s macroeconomic policy tried to manage aggregate demand and they succeeded. Facts show that in the 1970s, governments eventually tightened monetary and fiscal policy to get inflation under control. The mix of tighter demand policies and adverse supply shocks led to a big rise in unemployment in the 1980s (David Begg, 2003) . It is essential that if inflation goes up or down surely it damages to government and its employees. There is, in my view, this technocratic delusion that we can continue to print...
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