Gov Responses to Structural Unemployment in the UK post 1980s

Question 1

What was a key challenge in the 1980s related to employment?

Answer 1

Deindustrialisation accelerated, leading to mass unemployment in the North, Midlands, Scotland, and Wales.

This shift was particularly impactful in regions heavily reliant on manufacturing.

Question 2

What policy focused on reducing inflation during the 1980s?

Answer 2

Monetarist Policies

These policies prioritized controlling inflation over addressing unemployment.

Question 3

What were the interest rates in 1979 under monetarist policies?

Answer 3

Up to 17%

High interest rates negatively impacted businesses, contributing to job losses.

Question 4

What were Enterprise Zones established for?

Answer 4

Tax incentives for businesses in designated areas

Examples include Canary Wharf, Liverpool, and Cardiff.

Question 5

What was the outcome of the Enterprise Zones?

Answer 5

Limited success

They attracted some investment but failed to replace lost industrial jobs in other regions.

Question 6

What was a consequence of Labour Market Deregulation?

Answer 6

Weakened trade union power

This increased labour flexibility but also led to job insecurity.

Question 7

What was the government’s stance on regional investment during the 1980s?

Answer 7

Limited Regional Investment

The government believed the private sector should lead economic recovery, reducing public spending in declining regions.

Question 8

What was the effect of limited regional investment?

Answer 8

Long-term unemployment persisted, particularly in ex-industrial areas

A lack of job creation in these regions continued to be a significant issue.

Question 9

What did the Jobseekers’ Allowance (JSA) replace?

Answer 9

Some previous benefits

It faced criticism for not sufficiently addressing job shortages in deindustrialised regions.

Question 10

Which areas recovered during the 1980s due to growth in finance and services?

Answer 10

London and the South East

This contrasts sharply with the persistent job losses in other regions.

Question 11

What was the unemployment rate in 1984?

Answer 11

3.2 million (11.9%)

This was the highest rate since the 1930s.

Question 12

What was a key challenge in the early 1990s?

Answer 12

The early 1990s recession hit both manufacturing and financial services, creating broader unemployment.

This recession also caused high interest rates, business failures, and home repossessions.

Question 13

What caused business failures and home repossessions in 1992?

Answer 13

High interest rates.

These rates significantly impacted borrowing costs for both businesses and homeowners.

Question 14

What persistent issue affected Northern cities during the 1990s?

Answer 14

Persistent regional inequality.

Northern cities continued to struggle economically compared to other regions.

Question 15

What government response was introduced during John Major’s Conservatives (1992-1997)?

Answer 15

Regional Development Agencies (RDAs).

RDAs were aimed at encouraging investment in struggling regions.

Question 16

What was the purpose of the ‘Back to Work’ schemes introduced in the 1990s?

Answer 16

Aimed at retraining unemployed workers.

These schemes were part of the government’s strategy to address unemployment.

Question 17

What remained a focus during John Major’s government regarding the economy?

Answer 17

Labour market flexibility.

This included continuing privatisation and deregulation efforts.

Question 18

What was the ‘New Deal’ introduced by New Labour in 1998?

Answer 18

Provided training and job placement schemes for unemployed young people.

It focused on the long-term unemployed but had limited success in ex-industrial towns.

Question 19

What was a significant economic strategy of New Labour from 1997-2010?

Answer 19

Increased public sector employment, particularly in Northern cities and Scotland.

This strategy aimed to stimulate regional economies.

Question 20

What was a heavy reliance of New Labour to boost regional economies?

Answer 20

EU structural funding.

This funding was crucial for economic development in various regions.

Question 21

What significant economic change occurred in London during this period?

Answer 21

The financial sector expanded, particularly in London’s Docklands (Canary Wharf).

This expansion contributed to the UK’s economic growth but also increased vulnerability.

Question 22

What vulnerability did the UK face due to the financial sector expansion?

Answer 22

Vulnerability to the 2008 financial crisis.

The heavy reliance on the finance sector highlighted structural weaknesses in the economy.

Question 23

What was one effectiveness of the public sector jobs created during this period?

Answer 23

Helped reduce unemployment in some areas.

This was particularly evident in regions that benefitted from increased public sector employment.

Question 24

What was the unemployment rate in the UK in 1993?

Answer 24

10.6%.

This rate fell to 4.7% by 2005, indicating a significant improvement in employment.

Question 25

True or False: The dependency on finance made the UK resilient during the 2008 crisis.

Answer 25

False. ## Footnote This dependency actually made the UK vulnerable to economic downturns.

Question 26

What type of unemployment remained in ex-industrial regions despite efforts?

Answer 26

Structural unemployment. ## Footnote These regions struggled to recover from the economic transitions of the 1990s.

Question 27

What were the key challenges faced during the 2008-09 financial crisis?

Answer 27

Mass job losses in banking and services, widening North-South divide, worsening unemployment due to austerity policies ## Footnote The North-South divide refers to the economic disparity between London and ex-industrial regions.

Question 28

How did the financial crash impact the North of England?

Answer 28

Stagnation compared to London's quick recovery, exacerbated unemployment due to austerity policies ## Footnote Austerity measures included significant cuts to public sector jobs.

Question 29

What was the government response to the financial crisis from 2008 to 2010?

Answer 29

Bank bailouts, £500bn rescue plan, quantitative easing (QE) to stabilize markets ## Footnote RBS and Lloyds were major banks that received bailouts.

Question 30

What were the austerity policies implemented between 2010 and 2016?

Answer 30

£81bn in public spending cuts, mass redundancies in public sector, cuts disproportionately affected the North ## Footnote Over 700,000 public sector jobs were lost.

Question 31

What types of public sector job losses were most significant during the austerity period?

Answer 31

NHS, local government jobs ## Footnote Areas where government employment was a major employer were hit hardest.

Question 32

What was the aim of welfare reforms like Universal Credit?

Answer 32

To encourage work ## Footnote However, these reforms failed to create jobs in struggling regions.

Question 33

What initiatives were introduced under Localism & Devolution from 2010 to present?

Answer 33

City Deals, Metro Mayors, Northern Powerhouse ## Footnote These initiatives aimed to empower local authorities and boost investment.

Question 34

What was the goal of the Northern Powerhouse initiative launched in 2014?

Answer 34

To boost investment in the North ## Footnote It struggled with sustained funding despite its ambitious goals.

Question 35

What focus areas are included in the Industrial Strategy & Levelling Up initiatives from 2019 to present?

Answer 35

Regional infrastructure projects, tax incentives for investment outside London ## Footnote Examples include HS2 and investments in ports and green energy.

Question 36

What was the effectiveness of the recovery post-2010 in London compared to other regions?

Answer 36

London recovered quickly due to finance and tech growth; the North, Midlands, and Wales struggled ## Footnote This struggle was due to public sector cuts and lack of private investment.

Question 37

What trends contributed to job insecurity after the financial crisis?

Answer 37

Increase in zero-hour contracts and gig economy jobs ## Footnote These employment types often lack stability and benefits.

Question 38

What were the main policy approaches during the post-2016 period in the UK?

Answer 38

Brexit, COVID-19 response, 'Levelling Up' policy ## Footnote These policies were implemented under the leadership of Theresa May, Boris Johnson, and Rishi Sunak.

Question 39

What impact did Brexit have on manufacturing and agriculture?

Answer 39

Disrupted due to supply chain issues ## Footnote This disruption affected the availability of goods and resources.

Question 40

What financial impact did Brexit have on the City of London?

Answer 40

Lost financial jobs to EU cities like Frankfurt and Paris ## Footnote This resulted in a decline in London's financial sector.

Question 41

How did Brexit affect regional disparities in the UK?

Answer 41

Widened as Northern towns lacked economic alternatives ## Footnote This exacerbated economic inequalities between regions.

Question 42

What was the purpose of the furlough scheme during COVID-19?

Answer 42

Protected 9.6 million jobs from mass unemployment ## Footnote The scheme provided financial support to workers during lockdowns.

Question 43

What types of jobs disappeared permanently due to COVID-19?

Answer 43

Low-paid service jobs, e.g., retail, hospitality ## Footnote These sectors were heavily impacted by restrictions and changes in consumer behavior.

Question 44

What is the aim of the 'Levelling Up' policy?

Answer 44

Reduce regional inequality via infrastructure investment ## Footnote The policy focuses on enhancing economic opportunities in underdeveloped areas.

Question 45

What types of infrastructure investments are included in the 'Levelling Up' policy?

Answer 45

Investment in transport, e.g., Northern Rail, Freeports ## Footnote These initiatives aim to improve connectivity and economic prospects.

Question 46

What criticisms have been leveled against the 'Levelling Up' policy?

Answer 46

Lack of clear funding strategy & slow implementation ## Footnote Critics argue that these issues hinder the effectiveness of the policy.

Question 47

What was the unemployment rate in the UK in 2023?

Answer 47

3.8% ## Footnote Despite low unemployment, other economic challenges persist.

Question 48

What ongoing economic issues are present despite low unemployment?

Answer 48

Wage stagnation & cost of living crisis ## Footnote These factors affect the purchasing power of individuals.

Question 49

What is noted about productivity growth in the UK?

Answer 49

Remains weak, especially outside London ## Footnote This indicates a disparity in economic performance across regions.

Question 50

Has the 'Levelling Up' policy delivered major structural change?

Answer 50

Has yet to deliver major structural change ## Footnote The effectiveness of the policy in achieving its goals remains to be seen.