How to tackle structural unemployment has become a matter of debate in the UK’s financial crisis. Structural Unemployment is a more long-lasting form of unemployment than the short term “high-powered” jobs created by governments in times of recession. Structural unemployment exists because workers cannot find new jobs because of fundamental changes in an economy, usually caused by technological, competition, and global government policy. Structural unemployment occurs when workers can’t move closer to desired areas of employment because of factors like technological advances, competition for available work, or rising living costs.
In the UK the two most widely suffered categories of structural unemployment are the office workforce, who have lost their job due to cuts in advertising budgets, and the private sector, which has lost employments in response to cheaper, higher quality goods and services. The rise of internet based businesses in recent years has also affected the employment situation in the UK. The result is that the employment rate has fallen since the onset of the global recession in 2020. An increase in the number of hours worked each week and reductions in the number of hours worked per month has caused a deterioration in the conditions of British workers. This is the result of a breakdown in the employment market.
The rise in internet-related business has led to structural unemployment in the manufacturing sector in Britain. There has been a rapid growth of Chinese, Indian, Brazilian, and other low cost producers in the industrial parts market over the last few decades. This has meant an increase in the demand for labour in Britain, leading to the increasing amount of online vacancies in various sectors of the economy. This increase in competition has led to lower prices in British industries, and a drop in the cost of products and services. This drop in the overall economic activity has meant that a loss of around two million jobs has been recorded since the start of the global recession.
This decline in the number of jobs is worrying because it indicates that there has been a great recession, which has resulted in a massive loss of jobs. However, this figure is misleading as it masks other, more fundamental, changes taking place within the British economy. In fact, there are three main reasons why structural unemployment has become more evident in western economies over recent times. These are lower productivity rates, greater flexibility of employers, and the decline of western European labour force.
Productivity has declined in most western economies over the past several years. This decline is due to the high unemployment level, combined with the growth of immobility in the labour market. This has left workers with fewer alternatives in terms of occupation. Furthermore, workers are less mobile, meaning that they are often stuck in a particular industry in one area. In effect, they are forced to accept any employment offered, despite the insecurity of working under more than desirable conditions.
As for flexibility of employers, this term is used to describe an increase in the number of available jobs due to a reduction in the number of workers necessary to fill those jobs. The consequence is that there have been major increases in the number of openings for highly skilled and complementary workers, such as computer programmers. In addition, it can be argued that the introduction of a higher input tax has resulted in lower opportunities for workers who are already employed in highly profitable manufacturing activities. Combined with the fact that the number of workers in the manufacturing sector is growing at a faster rate than overall employment rates, and it is clear that structural unemployment has become an increasing problem in the UK.
Finally, there is the erosion of the skills of workers as a result of the decline of manufacturing and construction. In most cases, the decline results from the inability of workers to acquire necessary qualifications and job skills, as well as an increase in the competition for those positions. Structural unemployment occurs as a direct result of these factors. In fact, research has indicated that the majority of structural unemployment cases were the result of skill deficiencies.
If you are an unemployed car worker, there are some immediate measures you can take to protect your financial future. If your job is in danger, you must act quickly in order to prevent permanent damage to your financial situation and your health. The first step you should take if you feel you are at risk of losing your job is to get professional advice. The next step is to educate yourself about the ways in which industrial relations, social marketing, contract terms and car industry regulations can affect your ability to protect your position.