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

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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

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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?

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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.

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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.

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Factors influencing labour flexibility

Employment Legislation

Geographical Mobility

Poverty Trap

Education & Training

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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.

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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:

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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.’

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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

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The numbers of unemployed people

The travel-to-work patterns of the labour force.’

Outsourcing,

regional education/deprived?

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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

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5.8

375.8

396.6

5.5

Manufacturing

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470.5

469

-0.3

542.1

542.1

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0

Electricity, Gas and Water Supply

587.7

562.2

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-4.3

670.5

639

-4.7

Construction

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498

498.3

0.1

563.7

568.7

0.9

Distribution

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281.5

288.1

2.4

359.1

361.6

0.7

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Hotels and Restaurants

202.9

200.6

-1.2

249.5

240.7

-3.5

Transport & Communications

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467

472.1

1.1

537.3

548

2

Finance

536.6

564.4

5.2

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745.8

755.6

1.3

Business Services

434.2

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442.1

1.8

559.8

564.1

0.8

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Public Admin

487.1

502.7

3.2

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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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