By Andy Beharrell (auth.)
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Extra resources for Unemployment and Job Creation
Groups 2-4 are manufacturing industry and 6-9 are all the various service industries. The figures summarise nicely many of the trends we have been examining in this chapter. They show the growth in the service sector and how that has been generated mainly in the leisure, finance and retail firms. They show the general pattern of de-industrialisation in manufacturing industry with the job losses split between all the different areas of manufacturing. They show the declining importance of agriculture.
However, the growth in this sector was not sufficient in the first part of the 1980s to make up for the losses elsewhere. Thus unemployment rose. In the latter half of the decade, as the growth in the labour supply lessened and manufacturing and construction activity recovered slightly, the growth in service jobs was enough to stem the flow. Thus unemployment began to fall. We can see why this is the 20 Unemployment and Job Creation case if we refer back to our analysis of the labour market. The growth in service-sector jobs has been very gradual.
That is they look at the level of expenditure in the economy and see whether that is sufficient to create a level of production that gives everyone a job. In other words they are looking at the overall economy - unemployment at the macro-economic level. Neoclassical economists on the other hand look first to the behaviour of 39 40 Unemployment and Job Creation the labour market itself - unemployment at the micro-economic level. They see whether there are possible imperfections in the workings of the market that are stopping the demand for jobs matching the supply of jobs and therefore causing unemployment.
Unemployment and Job Creation by Andy Beharrell (auth.)