Employment or Labour
A. Employment and Unemployment
For almost a decade, the number of people employed in the UK labour market has been growing, an now exceeds 28 million. Both full time and part time employment have risen. The increase has been predominantly in the service sector, in which over three-quarters of employees now work. At the same time unemployment has fallen considerably since the last peak at the end of 1992 and in 2001 (reached its lowest level since the introduction of the International Labour Organisation (ILO) measure of unemployment in 1984. since spring 2001, however unemployment has been increasing slightly.
1. Patterns of Employment
The Labour Force Survey (LFS) carried out bby the Office for National Statistics shows tha, on a seasonally adjusted basis, over 30 million people age 16and over were economically active in the UK in spring (March-May) 2002, comprising 28,5 million in employment and 1,6 million ILO unemployed. The economic activity rate was 63,5 % for all persons aged 16 and over and 78,9 % for those of working age (men aged 16 to 64 and women aged 16 to 59). Among the working each group, some 7,8 million people were economically in active, of whom 5,5 million people did not want a job and2,3 million people want a job but were either not seeking work or not available to start work.
The number of people age 16 and over in employment in the UK rose by 179,00 in the year to spring 2002 to 28,5 million : some 15,7 million men and 12,8 million women. This representative and increase of 0,6 % during the year : 1,1 % for women and 0,3 % for men. The employment rate among those of working age was 74, 7 %, close to the previous high achieved in 1990.
One of the main long-term trends in the labour market is the increase participation of women in employment. In spring 2002, nearly 70 % of working age women were in employment, compare with 47 % in 1959 ( the year for which estimate are first available). Among many reasons for they greater involvement is that more women delay having children until their thiertis and are then more likely to return to work afterwards, making use of arrange of childcare options. Other reasons included the increasing levels of educational attainment among women and changing social attitudes to women working.
Employment table in the UK, spring 2002
Thousands, seasonally adjusted
Males Females Total
All aged 16 and over 23,229 24,117 47,346
Total economically active 16,629 13,454 30,083
of whom :
In employment 15,674 12,837 28,511
ILO employment 955 617 1,572
Economic activity rate (%) 84,1 73,0 78,9
Employment rate (%) 67,5 53,2 60,2
ILO unemployment (%) 5,7 4,6 5,2
2. Unemployment
The trend in the unemployment rate was steadly downward from 1993 to spring 2001. however, the latest estimates point to a slight increase. The UK ILO unemployment rate in spring 2002 was 5, 2 %, an increase of 0,3 Persentage points since the same period in 2001. The new rate represent nearly 1,6 million ILO unemployed people and compares with the EU average of 7,6 % and the G7 group of nations average of 6,6 %. Within the UK, the rate fell by 0,8 persentage point in Northern Ireland ( to 5,4 %) and rose by 1,0 persentage points (to 6,9 %) in Scotland. Within England, London, and the North east had the highest ILO unemployment rates, at 6,9 %. In addition, there can be significant variation in unemployment rates within regions.
In recent years there have been substantial falls in long-term unemployment. In spring 2002 some 343,000 people aged 16 and over have been ILO unemployed for a year or more, of whom 183,000 had been out of work for two years or more. These figures represent falls of 10 % and 16 % respectively since spring 2001.
In April 2002 the claimant count was 951,600 representing 3,2 % of the total UK workforce. Around to two-third had been claiming benefits for less than six months and 44 % for less than 13 weeks.
• Causes of Unemployment
In a modern economy unemployment has a variety of causes. Some of them relate to the general level of economic activity, others are the result of a failure of the labour market in an economy to work optimally.
Among the main types of unemployment we can consider:
1. Real wage unemployment
2. Demand deficient unemployment
3. Frictional unemployment
4. Structural unemployment
5. Hidden unemployment
• Real wage (classical) unemployment
Real wage unemployment is a form of dis-equilibrium unemployment that occurs when real wages for jobs are forced above the market clearing level.
Traditionally, trade unions and wages councils are seen as the institutions causing this type of unemployment although the importance of trade unions in the UK labour market has diminished significantly over recent years and this has not stopped unemployment reaching nearly three million twice in the last twenty years.
Classical unemployment is thought to be the result of real wages being above their market clearing level leading to an excess supply of labour. Some economists believe that the introduction of the national minimum wage may create some classical unemployment in industries where average wage rates are closer to the NMW level and where international competition from low-labour cost producers is severe.
• Demand deficient (or cyclical) unemployment
Cyclical unemployment is involuntary unemployment due to a lack of aggregate demand for goods and services. This is also known as Keynesian "demand deficient" unemployment and is associated with the transition of the economy through the business cycle. When there is an economic recession we expect to see a rising level of unemployment because of plant closures and worker lay-offs. This is due to a fall in demand leading to a contraction in output across many industries.
Although demand deficient unemployment is usually associated with economic recessions it can also exist in the long run when the economy is constantly run below capacity. As the economy recovers from a downturn, we expect to see the problem of cyclical unemployment decline. This has certainly been the case in the Uk over recent years as the recovery of output from the early 1990s recession gathered momentum. Nine years of sustained economic growth has led to the lowest recorded unemployment levels since the end of 1985. Unemployment fell below one million (using the claimant count measure) in February 2001.
• Frictional unemployment
Frictional unemployment is transitional unemployment due to people moving between jobs: For example, newly redundant workers or workers entering the labour market (such as university graduates) may take time to find appropriate jobs at wage rates they are prepared to accept. Many are unemployed for a short time whilst involved in job search. Imperfect information in the labour market may make frictional unemployment worse if the jobless are unaware of the available employment opportunities.
Some of the frictionally unemployed may opt not to accept jobs if they believe the tax and benefit system will reduce significantly the net increase in income from taking paid work. When this happens there are dis-incentives for the unemployed to accept work.
• Structural unemployment
Structural unemployment occurs when people are made unemployed because of capital-labour substitution (which reduces the demand for labour) or when there is a long run decline in demand in their particular industry. Structural unemployment exists where there is a mismatch between their skills and the requirements of the new job opportunities. Many of the unemployed from heavy manufacturing industry (e.g. in coal, steel and heavy engineering) have found it difficult to gain re-employment without an investment in re-training. This problem is one of occupational immobility. The Labour Government's New Deal programme has focused attempts to reduce long-term unemployment by increasing the human capital of the unemployed and improving their employability in the eyes of potential employers.
• Hidden unemployment
Whatever the published figures for unemployment, there are bound to be people who are interested in taking paid work but who, for one reason or another, are not classified as unemployed.
An example of this is discouraged workers - people who have effectively given up active search for jobs perhaps because they have been out of work for a long time and have lost both the motivation to apply for jobs and also the skills required.
The poverty trap can also act to increase hidden unemployment. Jobless workers may not apply for jobs because of financial disincentives created by the interaction of the income tax and state benefits system.
B. The Sectors of Employment
1. Employment by sectors
The major long-term trend in employment by sector in the UK has been a big increase in employment in service industries. Between Marc 1982 and March 2002 the number of workforce jobs in service industries increased from 17 million to 23 million, a rise of 38 %, compared with a rise in the total number of jobs of 16%. Growth in finance and business service was particularly strong, up by 91 % in this period, although there were falls in the year to March 2002
In recent years most other sectors have experienced falling levels of employment, particularly the traditional manufacturing industries, such as steel, shipbuilding and textiles. Between 1982 and 2002 the total number of manufacturing jobs declined by 33%. Agriculture and fishing have also declined, and in the year to March 2002 jobs in the sectors fell by 3.9%. the biggest long-term declined though has been in energy in water with a reduction of 70% between 1982 and 2002, reflecting, among other things, a large fall in jobs in the coal industry.
Table workforce jobs by industry
(percentage)
Job sectors Workforce jobs
(thousands) Per cent of
workforce jobs Per cent change
1982-2002
Agriculture and fishing 455 2 -28
Energy and water 192 1 -70
Manufacturing 3,959 13 -33
Construction 1,975 7 12
Services 22,917 78 38
Distribution, hotels, and restaurant 6,754 23 24
Transport and communication 1,761 6 10
Finance and business service 5,692 19 91
Public administration, education and health 6,963 24 28
Other services 1,748 6 57
All jobs 29,499 100 16
Source : Office for National Statistics
C. The working population
1. Full-time work
Compared with the rest of the EU, full-time employees in the UK work on average the longest hours per week in their main job and this holds for both men and women. Men’s hours range from 39 per week in Belgium and the Netherlands to 42 in Greece and 45 hours (United Kingdom).
The Minimum Wage in UK :
1. Workers were between 21 years old or more : £5.35 per hours
2. Workers aged 18-21 years : £4.45 per hours
3. Workers under 61-18 years or not in schooling : £3.30 per hours
The division of salary for weekly or monthly depends on duration of work. For example: a worker with minimum wage £5.35 working for 8 hours, Monday to Friday :
£5.35x8x5= £214.00
In a month : 214x4=£856.00
In a year : £11,128.00
2. Part-time work
There were over 7 million people in part-time work in the UK in spring 2002, of whom 80 per cent were women. Over the past decade the number of people working part-time has increased by over 1 million, but as a proportion of all those in employment it has remained at around 25 per cent. People work part-time for a variety of reasons. In spring 2002 nearly 75 per cent did not want a full-time job while 8 per cent were working part-time because they could not find full-time work, a proportion which has steadily decreased over the past decade.
Employment status of the UK workforce
Thousands
1998 1999 2000 2001 2002
Employees
Self-Employed
Unpaid family workers
Government-supported training and
Employment programmes
Employment
Of whom :
Full-time workers
Part-time workers
Workers with a second job
Temporary workers 23,657
3,290
102
178
27,227
20,473
6,755
1,190
1,745 24,119
3,232
102
159
27,611
20,761
6,850
1,282
1,712 24,622
3,178
110
144
28,053
21,083
6,970
1,191
1,727 24,889
3,193
98
151
28,332
21,293
7,038
1,185
1,728 25,060
3,249
96
105
28,511
21,400
7,111
1,151
1,588
Source : Labour Force Survey, Office for National Statistic
• Pay and Condition
a. Earnings
According to the New Earnings Survey, average gross weekly earnings for all employees in Great Britain were £356 in April 2001. this represented a 5.3 per cent increase since April 2000. weekly earnings for full-time adult workers whose pay was not affected by absence were £444, an increase of 5.9 per cent since April 2000.
Average hourly pay for full-time mail adult employees whose pay was not affected by absence was £11.97 in April 2001, compared with £9.76 for female employees. The pay gap between man and women has been narrowing in recent years.
Average gross weekly earnings for full-time employees ranged from £381 in the North East to £594 in London.
According to the New Earnings Survey, the average gross weekly pay of treasurers and company financial managers was six times that of those working as retail cash desk and check out operators. The weekly pay of the former increased by 11.4 per cent in the year to April 2001 and the latter by 5.4 per cent.
Highest and Lowest Paid Occupations, Great Britain, April 2001
Average gross weekly pay
Highest Paid
Treasurer and company financial managers 1,180
Aircraft flight deck officers 1,126
Medical Practitioners 1,097
Underwriters, claims assessors, brokers,
Investment analysts 909
Management consultants, business analysts 886
Lowest paid
Counterhands, catering assistants 204
Petrol pump forecourt attendants 204
Bar staff 199
Kitchen porters, hands 197
Retail cash desk and check-out operators 195
Source : New Earnings Survey, Office for National Statistics
c. Government Unemployment Schemes
1. Regional unemployment
The regional data showed:
Region Apr-09 May-09 Increase/Decrease Percent Increase Regional rate
North East of England 109,000 103,000 -6,000 -5.50% 8.30%
North West 262,000 281,000 19,000 7.25% 8.20%
Yorkshire/Humber 186,000 211,000 25,000 13.44% 8.00%
East Midlands 147,000 173,000 26,000 17.69% 7.40%
West Midlands 210,000 249,000 39,000 18.57% 9.30%
East 165,000 180,000 15,000 9.09% 6.00%
London 308,000 329,000 21,000 6.82% 8.10%
South East 212,000 244,000 32,000 15.09% 5.50%
South West 139,000 156,000 17,000 12.23% 5.80%
Wales 109,000 109,000 0 0.00% 7.60%
Scotland 135,000 176,000 41,000 30.37% 6.60%
Northern Ireland 46,000 49,000 3,000 6.52% 6.20%
TOTAL 2,028,000 2,260,000 232,000
2. Labour's Rights
Labour's Party
The Labor Party, under Neil Kinnock's leadership, was still endeavoring to come to terms with technological developments and changes in political perception which had overtaken British society. The attempt meant dumping many party policies and habits previously acquired, and that was something the left was not prepared to do without a fight. In March, Tony Benn, former cabinet minister and acolyte of the socialist flame ('He improves with immaturity,' said Harold Wilson), announced he would challenge Kinnock for the leadership of the party, as the rules permitted him to do. Benn ally Eric Heffer, a more down-to-earth representative of the working class, came forward to challenge incumbent Roy Hattersley for the deputy leadership, as did John Prescott, a pugnacious trade unionist. Kinnock rather petulantly dismissed Benn's challenge as futile and selfish and a distraction from the business of fighting the government.
Kinnock had other difficulties of his own making. On June 5 he appeared to break with the concept of unilateral nuclear disarmament, which had been a millstone around the party's neck in two general elections. However, he later backtracked, but not before his front-bench spokesman on defense, Denzil Davies, resigned, saying he was sick of being humiliated. Labor continued to trail the Conservatives in opinion polls, and Kinnock's personal rating in the late summer was the lowest since he was elected leader in 1983.
The Labor Party annual conference, held in Blackpool in October, was marked by the usual dissension. Kinnock, as expected, warded off the left-wing challenge to his leadership presented by Tony Benn, and Hattersley was reelected deputy leader. The delegates also defeated an attempt to kill a policy review envisioning abandonment of Labor's commitment to renationalize industries sold by Prime Minister Thatcher. The review signaled a move by Labor toward the political center. But Kinnock's resolution moving away from a commitment to unilateral nuclear disarmament was defeated.
The trade union wing of the Labor movement had troubles of its own. The unfavorable legal context set by Tory legislation and the more aggressive management style that went with it became evident to the National Union of Seamen (NUS) when it sought to protest planned layoffs by cross-Channel ferry operators in anticipation of competition from the Channel tunnel now under construction. The NUS began a nationwide strike on February 1. P&O European Ferries, the main operator of the Channel ferries, responded by simply sacking its NUS crews and hiring nonunion crews instead. When the NUS began to make the strike more effective by spreading it, the union was taken to court for unlawful secondary action and lost control of its assets. The union was defeated and impoverished into the bargain. Yet among its grievances was a valid concern that safety standards on the ferries were being sacrificed to economy and profit. (In 1987 a ferry had capsized off Zeebrugge through bad seamanship, leading to heavy loss of life.) Because of the strikes, Ferry service from Dover to France was disrupted between February and May.
At the end of August postal workers staged a one-day strike to protest the supplementary weekly payments being made to attract new recruits in southeast England. A series of scattered walkouts followed and by September 7 almost two-thirds of the 148,000 postal employees were on strike and the mail backlog was estimated at more than 100 million items. In mid-September the Post Office and the Union of Communication Workers reached a compromise settlement under which the recruitment bonuses would continue but the two sides would open discussions to find a replacement for the bonus system. A few days later most of the workers were back on the job.
E. Taxes
1. How much do the employment must pay the income tax?
In the UK there are two types of tax which is: Income tax: Known as PAYE (Pay as you earn), with variable magnitude started 0-2230 is subject to 10 %, while from 2231-34600 is subject to 22%
2. How Income Tax Is Calculated
These are the steps to calculate how much income tax is payable for a particular tax year:
Step 1 Add together all the taxable income, before tax, from all sources, including employed earnings and self-employed profits, taxable social security benefits, income from renting out accommodation, pensions and interest from bank and building society accounts, for that year. Exclude non-taxable income such as housing benefit, pension credit, maternity allowance, child benefit, child tax credit and working tax credit, disability living allowance, premium bond prizes and lottery winnings. For a full list of tax-free income see Tax-free and taxable income. You must use gross amounts in Step 1,that is, the amount of taxable income before any tax was deducted.
Step 2 Check whether you can claim tax relief for any money you have spent out over the year. For example, on your contributions towards a retirement annuity (but not on pension contributions where tax relief is given at source – these are taken into account in Step 4) or for paying certain employment expenses. Take these off here. If you are self-employed business expenses are deducted before reaching your taxable profit.
Step 3 Check which tax allowances you are entitled to. If you live in the UK on a day to day basis, you will be entitled to a personal allowance. You will also be entitled to age-related additions, if you are over 65, depending on the amount of your income and you may be entitled to Blind Person's Allowance (or to the surplus of your spouse’s Blind Person’s Allowance). These allowances are deducted at this stage in the calculation, leaving an amount of income on which tax is payable. This amount is called your taxable income.
Step 4 Multiply your taxable income by the appropriate tax rate. Most income is taxed at the basic rate of 20% (in 2009/10) and at higher rates for those with a sufficiently high income. If you will be paying tax at higher rates, any charitable payments you make under Gift Aid. Savings income will, in some circumstances, only be taxable at 10%, even if your bank or building society has taxed it at 20% (see Income tax rates) so a repayment may be due. You should now be able to work out the amount of tax due for that year, unless you are entitled to Married Couple's Allowance (see Step 5). When you have calculated the total tax due, take off tax already paid – that is, PAYE tax deductions from employment earnings and occupational pensions, and tax deducted at source from savings income.
Step 5 If you are married or in a civil partnership, and one of you was born before 6 April 1935, Married Couple's Allowance will be due. For marriages before 5 December 2005, the husband should claim the allowance, for marriages and civil partnerships made on or after 5 December 2005 the spouse or civil partner with the higher income should claim it. (It is possible for spouses or civil partners to share the minimum part of the allowance but, unless you married or registered your civil partnership during the tax year, you must have contacted HMRC about this before the start of the tax year). If you are claiming the allowance, 10% of the Married Couple's Allowance is deducted from your tax bill at this stage.
Employment and Labour
Employment or Labour
A. Employment and Unemployment
For almost a decade, the number of people employed in the UK labour market has been growing, an now exceeds 28 million. Both full time and part time employment have risen. The increase has been predominantly in the service sector, in which over three-quarters of employees now work. At the same time unemployment has fallen considerably since the last peak at the end of 1992 and in 2001 (reached its lowest level since the introduction of the International Labour Organisation (ILO) measure of unemployment in 1984. since spring 2001, however unemployment has been increasing slightly.
1. Patterns of Employment
The Labour Force Survey (LFS) carried out bby the Office for National Statistics shows tha, on a seasonally adjusted basis, over 30 million people age 16and over were economically active in the UK in spring (March-May) 2002, comprising 28,5 million in employment and 1,6 million ILO unemployed. The economic activity rate was 63,5 % for all persons aged 16 and over and 78,9 % for those of working age (men aged 16 to 64 and women aged 16 to 59). Among the working each group, some 7,8 million people were economically in active, of whom 5,5 million people did not want a job and2,3 million people want a job but were either not seeking work or not available to start work.
The number of people age 16 and over in employment in the UK rose by 179,00 in the year to spring 2002 to 28,5 million : some 15,7 million men and 12,8 million women. This representative and increase of 0,6 % during the year : 1,1 % for women and 0,3 % for men. The employment rate among those of working age was 74, 7 %, close to the previous high achieved in 1990.
One of the main long-term trends in the labour market is the increase participation of women in employment. In spring 2002, nearly 70 % of working age women were in employment, compare with 47 % in 1959 ( the year for which estimate are first available). Among many reasons for they greater involvement is that more women delay having children until their thiertis and are then more likely to return to work afterwards, making use of arrange of childcare options. Other reasons included the increasing levels of educational attainment among women and changing social attitudes to women working.
Employment table in the UK, spring 2002
Thousands, seasonally adjusted
Males Females Total
All aged 16 and over 23,229 24,117 47,346
Total economically active 16,629 13,454 30,083
of whom :
In employment 15,674 12,837 28,511
ILO employment 955 617 1,572
Economic activity rate (%) 84,1 73,0 78,9
Employment rate (%) 67,5 53,2 60,2
ILO unemployment (%) 5,7 4,6 5,2
2. Unemployment
The trend in the unemployment rate was steadly downward from 1993 to spring 2001. however, the latest estimates point to a slight increase. The UK ILO unemployment rate in spring 2002 was 5, 2 %, an increase of 0,3 Persentage points since the same period in 2001. The new rate represent nearly 1,6 million ILO unemployed people and compares with the EU average of 7,6 % and the G7 group of nations average of 6,6 %. Within the UK, the rate fell by 0,8 persentage point in Northern Ireland ( to 5,4 %) and rose by 1,0 persentage points (to 6,9 %) in Scotland. Within England, London, and the North east had the highest ILO unemployment rates, at 6,9 %. In addition, there can be significant variation in unemployment rates within regions.
In recent years there have been substantial falls in long-term unemployment. In spring 2002 some 343,000 people aged 16 and over have been ILO unemployed for a year or more, of whom 183,000 had been out of work for two years or more. These figures represent falls of 10 % and 16 % respectively since spring 2001.
In April 2002 the claimant count was 951,600 representing 3,2 % of the total UK workforce. Around to two-third had been claiming benefits for less than six months and 44 % for less than 13 weeks.
• Causes of Unemployment
In a modern economy unemployment has a variety of causes. Some of them relate to the general level of economic activity, others are the result of a failure of the labour market in an economy to work optimally.
Among the main types of unemployment we can consider:
1. Real wage unemployment
2. Demand deficient unemployment
3. Frictional unemployment
4. Structural unemployment
5. Hidden unemployment
• Real wage (classical) unemployment
Real wage unemployment is a form of dis-equilibrium unemployment that occurs when real wages for jobs are forced above the market clearing level.
Traditionally, trade unions and wages councils are seen as the institutions causing this type of unemployment although the importance of trade unions in the UK labour market has diminished significantly over recent years and this has not stopped unemployment reaching nearly three million twice in the last twenty years.
Classical unemployment is thought to be the result of real wages being above their market clearing level leading to an excess supply of labour. Some economists believe that the introduction of the national minimum wage may create some classical unemployment in industries where average wage rates are closer to the NMW level and where international competition from low-labour cost producers is severe.
• Demand deficient (or cyclical) unemployment
Cyclical unemployment is involuntary unemployment due to a lack of aggregate demand for goods and services. This is also known as Keynesian "demand deficient" unemployment and is associated with the transition of the economy through the business cycle. When there is an economic recession we expect to see a rising level of unemployment because of plant closures and worker lay-offs. This is due to a fall in demand leading to a contraction in output across many industries.
Although demand deficient unemployment is usually associated with economic recessions it can also exist in the long run when the economy is constantly run below capacity. As the economy recovers from a downturn, we expect to see the problem of cyclical unemployment decline. This has certainly been the case in the Uk over recent years as the recovery of output from the early 1990s recession gathered momentum. Nine years of sustained economic growth has led to the lowest recorded unemployment levels since the end of 1985. Unemployment fell below one million (using the claimant count measure) in February 2001.
• Frictional unemployment
Frictional unemployment is transitional unemployment due to people moving between jobs: For example, newly redundant workers or workers entering the labour market (such as university graduates) may take time to find appropriate jobs at wage rates they are prepared to accept. Many are unemployed for a short time whilst involved in job search. Imperfect information in the labour market may make frictional unemployment worse if the jobless are unaware of the available employment opportunities.
Some of the frictionally unemployed may opt not to accept jobs if they believe the tax and benefit system will reduce significantly the net increase in income from taking paid work. When this happens there are dis-incentives for the unemployed to accept work.
• Structural unemployment
Structural unemployment occurs when people are made unemployed because of capital-labour substitution (which reduces the demand for labour) or when there is a long run decline in demand in their particular industry. Structural unemployment exists where there is a mismatch between their skills and the requirements of the new job opportunities. Many of the unemployed from heavy manufacturing industry (e.g. in coal, steel and heavy engineering) have found it difficult to gain re-employment without an investment in re-training. This problem is one of occupational immobility. The Labour Government's New Deal programme has focused attempts to reduce long-term unemployment by increasing the human capital of the unemployed and improving their employability in the eyes of potential employers.
• Hidden unemployment
Whatever the published figures for unemployment, there are bound to be people who are interested in taking paid work but who, for one reason or another, are not classified as unemployed.
An example of this is discouraged workers - people who have effectively given up active search for jobs perhaps because they have been out of work for a long time and have lost both the motivation to apply for jobs and also the skills required.
The poverty trap can also act to increase hidden unemployment. Jobless workers may not apply for jobs because of financial disincentives created by the interaction of the income tax and state benefits system.
B. The Sectors of Employment
1. Employment by sectors
The major long-term trend in employment by sector in the UK has been a big increase in employment in service industries. Between Marc 1982 and March 2002 the number of workforce jobs in service industries increased from 17 million to 23 million, a rise of 38 %, compared with a rise in the total number of jobs of 16%. Growth in finance and business service was particularly strong, up by 91 % in this period, although there were falls in the year to March 2002
In recent years most other sectors have experienced falling levels of employment, particularly the traditional manufacturing industries, such as steel, shipbuilding and textiles. Between 1982 and 2002 the total number of manufacturing jobs declined by 33%. Agriculture and fishing have also declined, and in the year to March 2002 jobs in the sectors fell by 3.9%. the biggest long-term declined though has been in energy in water with a reduction of 70% between 1982 and 2002, reflecting, among other things, a large fall in jobs in the coal industry.
Table workforce jobs by industry
(percentage)
Job sectors Workforce jobs
(thousands) Per cent of
workforce jobs Per cent change
1982-2002
Agriculture and fishing 455 2 -28
Energy and water 192 1 -70
Manufacturing 3,959 13 -33
Construction 1,975 7 12
Services 22,917 78 38
Distribution, hotels, and restaurant 6,754 23 24
Transport and communication 1,761 6 10
Finance and business service 5,692 19 91
Public administration, education and health 6,963 24 28
Other services 1,748 6 57
All jobs 29,499 100 16
Source : Office for National Statistics
C. The working population
1. Full-time work
Compared with the rest of the EU, full-time employees in the UK work on average the longest hours per week in their main job and this holds for both men and women. Men’s hours range from 39 per week in Belgium and the Netherlands to 42 in Greece and 45 hours (United Kingdom).
The Minimum Wage in UK :
1. Workers were between 21 years old or more : £5.35 per hours
2. Workers aged 18-21 years : £4.45 per hours
3. Workers under 61-18 years or not in schooling : £3.30 per hours
The division of salary for weekly or monthly depends on duration of work. For example: a worker with minimum wage £5.35 working for 8 hours, Monday to Friday :
£5.35x8x5= £214.00
In a month : 214x4=£856.00
In a year : £11,128.00
2. Part-time work
There were over 7 million people in part-time work in the UK in spring 2002, of whom 80 per cent were women. Over the past decade the number of people working part-time has increased by over 1 million, but as a proportion of all those in employment it has remained at around 25 per cent. People work part-time for a variety of reasons. In spring 2002 nearly 75 per cent did not want a full-time job while 8 per cent were working part-time because they could not find full-time work, a proportion which has steadily decreased over the past decade.
Employment status of the UK workforce
Thousands
1998 1999 2000 2001 2002
Employees
Self-Employed
Unpaid family workers
Government-supported training and
Employment programmes
Employment
Of whom :
Full-time workers
Part-time workers
Workers with a second job
Temporary workers 23,657
3,290
102
178
27,227
20,473
6,755
1,190
1,745 24,119
3,232
102
159
27,611
20,761
6,850
1,282
1,712 24,622
3,178
110
144
28,053
21,083
6,970
1,191
1,727 24,889
3,193
98
151
28,332
21,293
7,038
1,185
1,728 25,060
3,249
96
105
28,511
21,400
7,111
1,151
1,588
Source : Labour Force Survey, Office for National Statistic
• Pay and Condition
a. Earnings
According to the New Earnings Survey, average gross weekly earnings for all employees in Great Britain were £356 in April 2001. this represented a 5.3 per cent increase since April 2000. weekly earnings for full-time adult workers whose pay was not affected by absence were £444, an increase of 5.9 per cent since April 2000.
Average hourly pay for full-time mail adult employees whose pay was not affected by absence was £11.97 in April 2001, compared with £9.76 for female employees. The pay gap between man and women has been narrowing in recent years.
Average gross weekly earnings for full-time employees ranged from £381 in the North East to £594 in London.
According to the New Earnings Survey, the average gross weekly pay of treasurers and company financial managers was six times that of those working as retail cash desk and check out operators. The weekly pay of the former increased by 11.4 per cent in the year to April 2001 and the latter by 5.4 per cent.
Highest and Lowest Paid Occupations, Great Britain, April 2001
Average gross weekly pay
Highest Paid
Treasurer and company financial managers 1,180
Aircraft flight deck officers 1,126
Medical Practitioners 1,097
Underwriters, claims assessors, brokers,
Investment analysts 909
Management consultants, business analysts 886
Lowest paid
Counterhands, catering assistants 204
Petrol pump forecourt attendants 204
Bar staff 199
Kitchen porters, hands 197
Retail cash desk and check-out operators 195
Source : New Earnings Survey, Office for National Statistics
c. Government Unemployment Schemes
1. Regional unemployment
The regional data showed:
Region Apr-09 May-09 Increase/Decrease Percent Increase Regional rate
North East of England 109,000 103,000 -6,000 -5.50% 8.30%
North West 262,000 281,000 19,000 7.25% 8.20%
Yorkshire/Humber 186,000 211,000 25,000 13.44% 8.00%
East Midlands 147,000 173,000 26,000 17.69% 7.40%
West Midlands 210,000 249,000 39,000 18.57% 9.30%
East 165,000 180,000 15,000 9.09% 6.00%
London 308,000 329,000 21,000 6.82% 8.10%
South East 212,000 244,000 32,000 15.09% 5.50%
South West 139,000 156,000 17,000 12.23% 5.80%
Wales 109,000 109,000 0 0.00% 7.60%
Scotland 135,000 176,000 41,000 30.37% 6.60%
Northern Ireland 46,000 49,000 3,000 6.52% 6.20%
TOTAL 2,028,000 2,260,000 232,000
2. Labour's Rights
Labour's Party
The Labor Party, under Neil Kinnock's leadership, was still endeavoring to come to terms with technological developments and changes in political perception which had overtaken British society. The attempt meant dumping many party policies and habits previously acquired, and that was something the left was not prepared to do without a fight. In March, Tony Benn, former cabinet minister and acolyte of the socialist flame ('He improves with immaturity,' said Harold Wilson), announced he would challenge Kinnock for the leadership of the party, as the rules permitted him to do. Benn ally Eric Heffer, a more down-to-earth representative of the working class, came forward to challenge incumbent Roy Hattersley for the deputy leadership, as did John Prescott, a pugnacious trade unionist. Kinnock rather petulantly dismissed Benn's challenge as futile and selfish and a distraction from the business of fighting the government.
Kinnock had other difficulties of his own making. On June 5 he appeared to break with the concept of unilateral nuclear disarmament, which had been a millstone around the party's neck in two general elections. However, he later backtracked, but not before his front-bench spokesman on defense, Denzil Davies, resigned, saying he was sick of being humiliated. Labor continued to trail the Conservatives in opinion polls, and Kinnock's personal rating in the late summer was the lowest since he was elected leader in 1983.
The Labor Party annual conference, held in Blackpool in October, was marked by the usual dissension. Kinnock, as expected, warded off the left-wing challenge to his leadership presented by Tony Benn, and Hattersley was reelected deputy leader. The delegates also defeated an attempt to kill a policy review envisioning abandonment of Labor's commitment to renationalize industries sold by Prime Minister Thatcher. The review signaled a move by Labor toward the political center. But Kinnock's resolution moving away from a commitment to unilateral nuclear disarmament was defeated.
The trade union wing of the Labor movement had troubles of its own. The unfavorable legal context set by Tory legislation and the more aggressive management style that went with it became evident to the National Union of Seamen (NUS) when it sought to protest planned layoffs by cross-Channel ferry operators in anticipation of competition from the Channel tunnel now under construction. The NUS began a nationwide strike on February 1. P&O European Ferries, the main operator of the Channel ferries, responded by simply sacking its NUS crews and hiring nonunion crews instead. When the NUS began to make the strike more effective by spreading it, the union was taken to court for unlawful secondary action and lost control of its assets. The union was defeated and impoverished into the bargain. Yet among its grievances was a valid concern that safety standards on the ferries were being sacrificed to economy and profit. (In 1987 a ferry had capsized off Zeebrugge through bad seamanship, leading to heavy loss of life.) Because of the strikes, Ferry service from Dover to France was disrupted between February and May.
At the end of August postal workers staged a one-day strike to protest the supplementary weekly payments being made to attract new recruits in southeast England. A series of scattered walkouts followed and by September 7 almost two-thirds of the 148,000 postal employees were on strike and the mail backlog was estimated at more than 100 million items. In mid-September the Post Office and the Union of Communication Workers reached a compromise settlement under which the recruitment bonuses would continue but the two sides would open discussions to find a replacement for the bonus system. A few days later most of the workers were back on the job.
E. Taxes
1. How much do the employment must pay the income tax?
In the UK there are two types of tax which is: Income tax: Known as PAYE (Pay as you earn), with variable magnitude started 0-2230 is subject to 10 %, while from 2231-34600 is subject to 22%
2. How Income Tax Is Calculated
These are the steps to calculate how much income tax is payable for a particular tax year:
Step 1 Add together all the taxable income, before tax, from all sources, including employed earnings and self-employed profits, taxable social security benefits, income from renting out accommodation, pensions and interest from bank and building society accounts, for that year. Exclude non-taxable income such as housing benefit, pension credit, maternity allowance, child benefit, child tax credit and working tax credit, disability living allowance, premium bond prizes and lottery winnings. For a full list of tax-free income see Tax-free and taxable income. You must use gross amounts in Step 1,that is, the amount of taxable income before any tax was deducted.
Step 2 Check whether you can claim tax relief for any money you have spent out over the year. For example, on your contributions towards a retirement annuity (but not on pension contributions where tax relief is given at source – these are taken into account in Step 4) or for paying certain employment expenses. Take these off here. If you are self-employed business expenses are deducted before reaching your taxable profit.
Step 3 Check which tax allowances you are entitled to. If you live in the UK on a day to day basis, you will be entitled to a personal allowance. You will also be entitled to age-related additions, if you are over 65, depending on the amount of your income and you may be entitled to Blind Person's Allowance (or to the surplus of your spouse’s Blind Person’s Allowance). These allowances are deducted at this stage in the calculation, leaving an amount of income on which tax is payable. This amount is called your taxable income.
Step 4 Multiply your taxable income by the appropriate tax rate. Most income is taxed at the basic rate of 20% (in 2009/10) and at higher rates for those with a sufficiently high income. If you will be paying tax at higher rates, any charitable payments you make under Gift Aid. Savings income will, in some circumstances, only be taxable at 10%, even if your bank or building society has taxed it at 20% (see Income tax rates) so a repayment may be due. You should now be able to work out the amount of tax due for that year, unless you are entitled to Married Couple's Allowance (see Step 5). When you have calculated the total tax due, take off tax already paid – that is, PAYE tax deductions from employment earnings and occupational pensions, and tax deducted at source from savings income.
Step 5 If you are married or in a civil partnership, and one of you was born before 6 April 1935, Married Couple's Allowance will be due. For marriages before 5 December 2005, the husband should claim the allowance, for marriages and civil partnerships made on or after 5 December 2005 the spouse or civil partner with the higher income should claim it. (It is possible for spouses or civil partners to share the minimum part of the allowance but, unless you married or registered your civil partnership during the tax year, you must have contacted HMRC about this before the start of the tax year). If you are claiming the allowance, 10% of the Married Couple's Allowance is deducted from your tax bill at this stage.
