EARNING IT Essay Example | Topics and Well Written Essays - 3000 words

EARNING IT - Essay Example It is worthwhile to mention the fact that employment and business outlook aggravated in 2007 – 2008 after collapse of housing sector or property market and ‘bursting of speculative financial sector’ that resulted in financial difficulties and a credit crunch like situation. Indeed, the bankruptcies of various small and large financial institutions followed by closures of manufacturing and services sector organisations led to rapid surge in unemployment and economic contraction. In simple worlds, the aggregate demand and supply reduced that in turn resulted in a decrease in productive activities and new employment opportunities for general public. The weakness in economy, consumer buying power and real incomes also adversely impacted relatively strong sectors such as heavy machinery, engineering, arms, information technology, airline industry, electronics and others etc. because of fall in demand from all consumers. Hence, these strong sectors were unable to sustai n their business volume and cut down their employees thereby contributing in unemployment across UK. (Gregg and Wadsworth, 2010) According to Bell and Blanchlower (2010), the total real output of United Kingdom was decreased by nearly 7% during 2009; however, some improvements recovered Gross Domestic Product (GDP) growth by2% during 2010. In addition, the total job losses from recession during 2008 – 2010 were recorded to be just under 0.6 million, whereas the worst conditions in 1980 – 1983 and 1990 – 1993 left 1.6 million and 1.7 million workers unemployed respectively. Overall, there were 2.5 million workers unemployed in 2010 all across UK out of which 2 million belonged to England alone (remaining were from Scotland and Wales). In this way, it is justified to argue that UK economic structure is based on stronger grounds because relatively fewer job losses were recorded even though the output had expanded 3 times the aggregate