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Government Subsidies

 

The United Kingdom has paved the way for
unemployed citizens to receive monetary support while they search for a job. In
a recent online article Jones (2012) reported that according to Deputy Prime
Minister Nick Clegg the government will move from the normal nine months subsidy
pay off to a new pay off pan of six months, at a rate of 2,275 Great Britain Pounds
per person. There
are a number of subsidies provided by the United Kingdom that also include:

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Housing benefit

 

This advantage is not
run by way of the Job Centre like Jobseekers Allowance. it is run by means of
your nearby council and you may need to wait a separate meeting with them or
offer evidence that you are unemployed. this is cash to assist pay your rent (Totaljobs, 2018).

 

Council tax and housing benefit

 

This option is usually
applied for at the identical time as your housing gain and is paid by means of
your nearby council. You would not simply acquire any money directly, it will
just automatically come off your council tax invoice and you can save as much
as 100 percent of your overall annual bill (Totaljobs, 2018).

 

Child benefit

 

This programme is not handiest
open to unemployed person, it consists of a wide range of circumstances for
absolutely everyone with youngsters underneath the age of sixteen and it can
without a doubt help in cases where you are suffering to financially guide your
own family (Totaljobs, 2018).

 

Jobseeker Allowance

 

In this plan
jobseekers will be entitled to two sorts of Jobseeker’s Allowance, that is, if
they meet the following conditions, unemployed person should be eighteen years
or over, in essence below the state pension age, they must not be engaged in fully
time education, jobseekers must also be on the market for work and actively
seeking work. Social Insurance Contributions that is solely paid by workers
will qualify them for these edges. Contribution-based Jobseeker’s Allowance is rewarded
at the end of 182 days only if someone is laid-off, capable of and on the
market for work, and is actively seeking work. A substantive weekly rate of £56.80
is paid to those between the ages of sixteen to twenty-four and £71.70 to those
at the age of twenty-five or over. Contribution based mostly on Job Seekers’
Allowance is paid as long as the employee has paid enough category one social
insurance contributions within the last two tax years. An unemployed person is
eligible for financial gain from the job seekers’ allowance if he or she does
not have the required amount of social insurance contributions as his or her
co-worker and is financially unstable. The monetary based allowance is paid at a
rate of £56.80 for single persons underneath the age of twenty-five, £71.70 for
singles over the age of twenty-five, £112.55 to couples aged eighteen or over),
£71.70 to single parents eighteen or over and £56.80 for single parents
underneath 18. These payments are readily available every two weeks (Wageindicator,
2018).

 

United Kingdom’s Gross Domestic Product

 

In theory
Okun’s (1962), states that for every 1 percent increase in the unemployment
rate, a country’s Gross Domestic Product will be an additional roughly 2 percent
lower than its potential Gross Domestic Product and a 3 percent increase in
output corresponds to a 1 Percent decline in the rate of unemployment, a 5 percent
increase in labour force participation, a 5 percent increase in hours worked
per employee, and a 1 percent increase in output per hours worked or
labour productivity (Okun’s 1962,
cited in UK Eassy, 2015).

In real time as of 2017 United Kingdom
witnessed an increase in Gross Domestic Product by 0.4 percent. Over the years with the commissioning of
government interventions to aid the unemployed, the United Kingdom has seen
improvement in the unemployment rate, it is reported that in the 2017 the scale
of unemployed citizens dropped considerably from 4.8 percent in January 2017 to
as low as 4.3 percent in the three months to October of 2017, this can also be
represented by say that in 2017 there were a total of 1.43 million unemployed
citizens and that end of October 2017 a sum 182,000 fewer unemployed persons
that was reported in the previous year (Trading
Economics, 2018).

 

 

 

 

 

Conclusion

 

The United Kingdom spent approximately 0.4
percent of its Gross Domestic Product on unemployment programmes every year,
with the largest share being spent on job search assistance and a very small
amount if any on subsidies and Training. Many time financial Support and
Training programmes have a mixed impact and sometimes prove to be unsuccessful
in reducing structural or cyclical unemployment. They young generation are less
likely to take training programmes seriously and because of this the government
is willing to send less in that area, while on the other hand subsidies tend to
make citizens highly dependent on government support and more reluctant to make
every effort to find a job. Nevertheless there are some cases that show a very
small success rate in training that targets young people and the older
unemployed population (Wilson, 2013).

The year 2017 Investment into Active Labour
market Policies, have proven statistical to have a great impact in the level of
unemployment, in that year the United Kingdom market expected a 4.2 percent
drop in unemployment but the scales were just above expectations and for that
year a 4.3 percent drop was recorded (Trading
Economics, 2018).

In theory (Okun’s 1962) that for every 1 percent
decline in the rate of unemployment there will be a 5 percent increase in
labour force participation, a 5 percent increase in hours worked per employee
and a 1 percent increase in output per hours worked or labour productivity. If
in 2017 the United Kingdom reported a 4.3 percent decline in the rate of
unemployment, then that means according to Okun’s law the United Kingdom for the
year 2017 should have seen an approximation of 20 percent increase in hours
worked per employee, 20 percent increase in labour force participation and a 4
percent increase in output in labour productivity (UK Eassy, 2015).