Trends In The Uk Labour Markets Economics Essay
External Influences; Technology, Nature of Business Activity, Transport, Social Trends (Highest worklessness household rate since 1999), Migration
Government; NI, Legislation, Tax, Benefits
Trade Unions; Degree of Power, Membership, Trade Unions
6.1 Readers want to know some of the background of the subject, which would form the theme of your report.
6.2 If the report has been designed to solve a ‘problem’, the history of the ‘problem’ should be reviewed, including the situation that prompted the report to be written.’
This report will outline the
Summary of Contents
Identify trends
Compare Trends
Evaluate trends -In terms of supply and demand factors (include wages, market flex, participation rates, employment levels. How have they been affected?
2.1 If the report is more than 3 pages (750 to 1200 words) long, a summary should be provided so that people can see at a glance what the report is about, its findings, and what the recommendations are. Write the summary after you have written the report’s Findings.
2.2 Normally the summary will be printed immediately after the title page.
2.3 The summary should be an abbreviated version of the whole report. So summarise each section and explain what it does. Then simply give the outcome when all the sections are combined.
Methods Used
7.1 It is essential for readers to judge the authenticity of the evidence, so include this section in your report.
Books, Internet, National Statistics, Group input. Word Doc’s / Graphs / Tables / Charts /
Reliability?
Employment levels in the UK (General)
Why are the trends as they are?
WHAT IS A LABOUR MARKET?
A labour market is a mechanism which matches potential employers of people – the demand for labour – with people who are available for work – the labour supply. Labour markets operate at local, regional, national and increasingly international levels, reflecting how economies operate.
Factors influencing labour flexibility
Employment Legislation
Geographical Mobility
Poverty Trap
Education & Training
Forces that affect a labour market
Labour markets are affected by a wide range of factors including:
‘Changes in the external business environment, such as increases in consumer demand for the goods or services provided by an industry, or cheaper competition from abroad leading to job losses
Changes in the internal business environment, such as changes in production processes, new technologies or business structures resulting in job losses, or changes in the level of occupations available (for example, more technical jobs, fewer unskilled jobs)
Government interventions, such as regeneration programmes supporting education, training and investment in particular skills or geographical areas.
New laws which affect jobs (for example, banning hunting, or restricting the number of hours a lorry driver can drive)
National and international policies like the introduction of National Minimum Wages, or free movement of labour within the European Union
Legislation affecting employment rights – Equal Pay Act, Sex Discrimination Act, Race Relations Act, Asylum and Immigration Act, and the Disability Discrimination Act – placing restrictions on how employers recruit.’
Employment levels in;
What makes up the ‘demand’ side of LMI?
‘The labour demand side of LMI provides information about where jobs are, for example:
Those industries which are taking on staff and those which are shedding staff. In LMI, industries are classified using a system called the Standard Industry Classification system (SICs)
The type and level of occupations which are in demand. In LMI, occupations are classified using a system called the Standard Occupational Classification system (SOCs)
The sort of work, in terms of work patterns, which is in demand: full time, part-time, temporary work, self employment, etc
The levels of skills and qualifications needed to do the jobs available.’
What makes up the ‘supply’ side of LMI?
‘The labour supply side of LMI provides information about the people who make up the labour force:
The numbers of people available to work – the potential labour force
The gender profile, ethnic mix, age and disability profile of the labour force
The skills and qualification levels of the labour force
The numbers of unemployed people
The travel-to-work patterns of the labour force.’
Outsourcing,
regional education/deprived?
Demographics
Gross Weekly Pay (£) for all employee1 jobs by industry2, April 2008 and 2009
Median
Mean
Column1
2008
2009
% Change
2008(2)
2009(2)
% Point Change
All employees
388.8
397.3
2.2
473.2
480.9
1.6
Agriculture, Hunting and Forestry
320
338.6
5.8
375.8
396.6
5.5
Manufacturing
470.5
469
-0.3
542.1
542.1
Electricity, Gas and Water Supply
587.7
562.2
-4.3
670.5
639
-4.7
Construction
498
498.3
0.1
563.7
568.7
0.9
Distribution
281.5
288.1
2.4
359.1
361.6
0.7
Hotels and Restaurants
202.9
200.6
-1.2
249.5
240.7
-3.5
Transport & Communications
467
472.1
1.1
537.3
548
2
Finance
536.6
564.4
5.2
745.8
755.6
1.3
Business Services
434.2
442.1
1.8
559.8
564.1
0.8
Public Admin
487.1
502.7
3.2
531.5
545.8
2.7
Education
369.8
389.2
5.2
416.7
434.1
4.2
Health
344.6
352.9
2.4
426.8
442.4
3.7
Other Services
334
338.1
1.2
408.1
419.1
2.7
Banking & Finance
Construction
The number of jobs in the UK has fallen, with ‘Manufacturing’ and ‘Construction’ industries having the largest percentage falls. However, there were increases in the number of jobs in ‘Public Admin, Education & Health’. Regionally, with a large manufacturing base, the West Midlands has experienced the largest fall in jobs, with the East of England the smallest fall.
Manufacture
‘Table 1.3 shows the quarterly percentage change in the level of workforce jobs by industry since the onset of the current recession up until June 2009, which is the latest period in the series. For each quarter throughout the current recession, there have been falls in the number of workforce jobs in ‘Manufacturing’, with the largest fall in the first part of 2009, where it fell by 2.8 per cent in the quarter to March 2009. For the ‘Construction’ industry, at the start of the recession there was no change in the number of workforce jobs, followed by an increase over the summer of 2008 of 1.3 per cent. Since then, there have been three consecutive falls in the number of construction jobs, with the largest fall in the quarter to June 2009 of 2.7 per cent. Within the service sector, there have been falls in each quarter in the number of jobs in the ‘Distribution, Hotels & Restaurants’ services while increases in the number of jobs each quarter in ‘Public Admin, Education & Health’ services.’
The proportion of jobs in the manufacturing sector in the UK fell from 28.5 per cent in 1978 to 10.0 per cent in 2009. (Table 4.8)
Conclusion
‘Finally, all of these indicators show that since the start of the recession, there has been
a decline in the labour market across the UK. This is evident with the falls in the number
of jobs, resulting in lower employment, increases in redundancies and increases in
unemployment. However, the rate of decline of the labour market has slowed down in
the third quarter of 2009. This is shown with the smallest quarterly increase in
unemployment rates since the start of the recession, the largest quarter on quarter fall
in the number of redundancies, and only a marginal fall in vacancies on the previous
quarter.’
Action taken
What did you do and when?
What was useful? What was not? Why?
Recommendations
The Future
In the future, Labour Market Intelligence predicts that there will be fewer jobs in:
Craft and related occupations
Clerical and secretarial occupations
Transport and machine operatives’ jobs.
There will be more jobs in:
Management and administration
Professional occupations
Associate professional and technical occupations
Personal and protective services
Sales.
‘It is also predicted that most jobs at all levels will need more skills to do them due to:
The increased use of new technology: computers; telecommunications; scientific and technical equipment; etc
More demands from legislation: health and safety; qualification requirements for jobs; etc
Multi-skilling: where employers need staff who can undertake a wide range of tasks rather than focus on a single trade or skill area
Increased emphasis on quality and customer care and a rise in customer expectations. Competition is fierce and to gain and keep customers many companies now place more emphasis on innovation, quality and customer care.’
Bibliography / Reference List
British Chamber of Commerce: www.chamberonline.co.uk
Confederation of British Industry: www.cbi.org.uk
Connexions service – www.connexions.gov.uk
Department for Education and Skills: www.dfes.gov.uk/trends
Disability Statistics: www.disability.gov.uk
Graduate employment information: www.prospects.ac.uk
Higher Education Funding Council for England: www.hefce.ac.uk
Learning & Skills Council: www.lsc.gov.uk
National Guidance Research Forum: www.guidance-research.org/future-trends/lmiresources
National Statistics Office: www.statistics.gov.uk
Online statistics database: www.nomisweb.co.uk
Trades Union Congress: www.tuc.co.uk
Warwick University Institute of Employment Research: www.warwick.ac.uk/ier
The Worktrain LMI Portal – www.worktrain.gov.uk
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