A Great Recession in the UK Labour Market : A Transatlantic Perspective
AbstractThe increase in unemployment in the United Kingdom that accompanied the Great Recession has been conspicuous by its moderation. The rise in joblessness is dwarfed by the recent experience of the United States, by past recessionary episodes in the U.K. and by the contraction in GDP in the U.K. Increased rates of job loss have played a dominant role in shaping the rise in British unemployment. Unemployment duration has not increased to the levels seen in previous recessions, in contrast to the U.S. where duration substantially exceeds previous peaks. Looking forward, the U.K. labour market appears to have adjusted fully to the shocks that prompted the recession. Signs of reductions in match efficiency witnessed recently in the U.S. are not mirrored in the U.K. In contrast, while long-term unemployment currently remains well below historical levels, recent estimates of job finding rates suggest that it has the potential to rise much further. Thus, a timely recovery in aggregate demand will play an important role in averting persistently high unemployment in the future.
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Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 945.
Date of creation: 2010
Date of revision:
Labour market ; business cycle ; unemployment ; worker flows JEL Classification: E24 ; J6;
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- JEL - Labor and Demographic Economics - - - - -
- Cla - Mathematical and Quantitative Methods - - - - -
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
- NEP-BEC-2010-10-16 (Business Economics)
- NEP-EEC-2010-10-16 (European Economics)
- NEP-LAB-2010-10-16 (Labour Economics)
- NEP-MAC-2010-10-16 (Macroeconomics)
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- Nitika Bagaria & Dawn Holland & John Van Reenen, 2012. "Fiscal Consolidation During a Depression," CEP Special Papers 27, Centre for Economic Performance, LSE.
- repec:mod:depeco:0010 is not listed on IDEAS
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