The paper "Economy in Britain" is an outstanding example of a macro & microeconomics assignment. The economic downfall that is not a part of Britain is one that includes a variety of factors that are linking to the overall problems within the economy. Understanding these difficulties, and how different areas of the economy are affecting the lives of citizens is one that can be factored together on different levels. Understanding how the businesses, consumer demand, restraints with money and overall downfall within the economy are causing a chain effect also provides specific information to how the economy has become the worst in over 60 years. 1.
The first component of the economic factors being at their worst in 60 years is specific economic indicators. One of the main components is linked to the jobs and employment options within the UK. This is at an all-time low and is expected to get worse within the next two years. For instance, it is being forecast ed that there will be unemployment numbers growing by up to 1.5 million in the next two years alone, which would move unemployment to a high of 9%.
This is the highest it has been, with the only numbers coming close to this being in the 1990s. It is said that the unemployment rise is linked to the inability to run businesses with the same number of employees, as costs for the business are moving up, and demand for products and services within specific corporations are continuing to move down. This combination is forcing businesses to reach the need to cut down on employee costs, specifically through unemployment, cut hours of time and by taking out benefits available to employees (Paton, Nic, 2008). While this specific indicator is seen as one of the outcomes of the economic recession, there are also other areas that are causing the unemployment issue to continue to rise to all-time highs.
This specifically links to retail sales that are currently on the market. Despite the time of year, it is being shown that the retail sales within Britain are flat. Over a three month period, this has significantly fallen, by an average of 0.7%. Some stores have reached all-time lows of sales over the past month, averaging at 4% (National Statistics, 2008).
1. Paton, Nic. (2008). A Silver Lining? Management Issues in the Work Place. Retrieved from: http://www.management-issues.com/2008/11/3/research/a-silver-lining.asp.
2. National Statistics. (2008). Retail Sales. Retrieved from: http://www.statistics.gov.uk/cci/nugget.asp?id=256.
3. National Statistics. (2008). Latest Indicators of Prices and Inflation. Retrieved from: http://www.statistics.gov.uk/instantfigures.asp.
4. Nationwide Building Society. (2008). House Price Crash. Retrieved from: http://www.housepricecrash.co.uk/.
5. TSB, Lloyds. (2008). UK Inflation Data Key This Week. Economics Weekly: Retrieved from: http://www.actionforex.com/fundamental-analysis/weekly-forex-fundamentals/economics-weekly:-uk-inflation-data-key-this-week-2008071452710/.