THE GREAT RECESSION IN THE U.K. LABOUR MARKET: A TRANSATLANTIC PERSPECTIVE

Michael Elsby and Jennifer C. Smith

No 270786, Economic Research Papers from University of Warwick - Department of Economics

Abstract: The 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.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 26
Date: 2010-09-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

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Related works:
Journal Article: The Great Recession in the UK Labour Market: A Transatlantic Perspective (2010)
Journal Article: THE GREAT RECESSION IN THE UK LABOUR MARKET: A TRANSATLANTIC PERSPECTIVE (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:270786

DOI: 10.22004/ag.econ.270786

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