Macroeconomics: UK economy, IB Economics
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Macroeconomics: UK economy, IB Economics
A brief overview of relevant articles for IB and A-Level all relating to the UK economy
Curated by Graham Watson
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Key ‘Bidenomics’ architect calls for spending ‘race to the top’ on green tech | Economics | The Guardian

Key ‘Bidenomics’ architect calls for spending ‘race to the top’ on green tech | Economics | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Biden adviser Heather Boushey urges UK and Europe to increase climate friendly investment to reboot growth
Graham Watson's insight:

Should the UK govenrment be spending more on green investment? Certainly Presidential adviser, Heather Boushey thinks that doing so will speed the transition to green energy, increase energy security, create jobs and there's even a rare sighting of the phrase "crowding in". 

 

Are you 100% certain what it means? 

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Green projects are boosting UK growth - CBI report

Green projects are boosting UK growth - CBI report | Macroeconomics: UK economy, IB Economics | Scoop.it
Projects aimed at lowering carbon emissions are boosting growth in poorer parts of the country.
Graham Watson's insight:

On the plus side, apparent the drive for a zero carbon economy, and increased green investment has boosted growth, created job opportunities and resulted in higher wages for those people involved in the sector according to the CBI. 

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Energy-saving measures could boost UK economy by £7bn a year, study says | Energy | The Guardian

Energy-saving measures could boost UK economy by £7bn a year, study says | Energy | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Exclusive: Green home upgrades could also create 140,000 new jobs by 2030, analysis by Cambridge Econometric finds
Graham Watson's insight:

Not only could promoting greater energy efficiency reduce negative externalities but it could also create jobs according to analysis by Cambridge Econometrics. 

 

It would seem to be a win-win policy - but, as in most economics - there must be a trade-off somewhere. Can you think where?

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UK employers take on workers at slower rate after fall in applicants | UK unemployment and employment statistics | The Guardian

UK employers take on workers at slower rate after fall in applicants | UK unemployment and employment statistics | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Shortage of candidates since January means thousands of vacancies unfilled
Graham Watson's insight:

Worrying signs for the labour market with the news that the rate at which jobs are being created is falling - and there are hundreds of vacancies. 

 

This means that not only are we producing inside our PPF, and our actual growth is lower than our potential growth but there's also going to be upwards pressure on wages, neither of which seem to advance our macroeconomic objectives.

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UK green economy has failed to grow since 2014, according to official data | Green economy | The Guardian

UK green economy has failed to grow since 2014, according to official data | Green economy | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Office for National Statistics finds ‘no significant change’ in turnover and jobs in low-carbon and renewable energy sector
Graham Watson's insight:

So much for a pivot towards the green economy - the latest data from the ONS suggests little change in turnover and jobs in the sector since 2014.

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Shell pulls out of Cambo oil field development

Shell pulls out of Cambo oil field development | Macroeconomics: UK economy, IB Economics | Scoop.it
The oil giant said the economic case for investment in the controversial project was "not strong enough".
Graham Watson's insight:

Lots of economics here - it could be either micro- or macroeconomic - environmental economics or regional economics - in that any investment in the Cambo field might have a multiplied effect on the Scottish economy, boosting economic growth and creating jobs. And what about the implications for the UK's supply side? 

 

However, to what extent is it purely economic concerns that has driven this decision? In which case, you might also think about the economics of a company's brand image. 

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Scooped by Graham Watson
Scoop.it!

Watchdog questions effectiveness of Kickstart job placement scheme

Watchdog questions effectiveness of Kickstart job placement scheme | Macroeconomics: UK economy, IB Economics | Scoop.it
It is unclear whether the placement scheme for 16-24 year olds is working, says National Audit Office.
Graham Watson's insight:

Government failure? The National Audit Office seems to think so suggesting that the vast majority of jobs that the government's Kickstart scheme claims to have created would probably have come about without the scheme. 

 

The following quote, from NAO head Gareth Davies, is particularly damning:  it "has limited assurance that Kickstart is having the positive impact intended. It does not know whether the jobs created are of high quality or whether they would have existed without the scheme. It could also do more to ensure the scheme is targeted at those who need it the most," he said.

 
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Scooped by Graham Watson
Scoop.it!

Low taxes and levelling up: the great freeport experiment comes to Teesside | Economic growth (GDP) | The Guardian

Low taxes and levelling up: the great freeport experiment comes to Teesside | Economic growth (GDP) | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
The Tories set great store by the special economic zone, but will it create thousands of jobs, or just be the economic damp squib experts predict?
Graham Watson's insight:

Fans of the notion of levelling up should read this article about the creation of so-called freeports in the UK. The first freeports based in Teesside, the Humber and on the Thames are due to be created this week. But will they generate the benefits, and the jobs predicted.

 

If they do, the tax breaks and subsidised electricity could attract businesses and generate significant regional multiplier effects, if they don't it could be another example of government failure. However, I'm similarly amused that we're now copying the Chinese growth model in the hope of stimulating growth.

divine's curator insight, December 20, 2021 4:11 AM

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Scooped by Graham Watson
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UK recovery still unsteady despite July job surge, finds report | Economic recovery | The Guardian

UK recovery still unsteady despite July job surge, finds report | Economic recovery | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it

Even as Covid restrictions are lifted, staff shortages and Brexit could yet undermine revival, says BDO

Graham Watson's insight:

It's a mixed picture in the UK economy, according to professional services group BDO - job creation in some sectors, staff shortages in other and the extent of the damage from Brexit not yet fully observable. Apart from those of us keeping our eyes on supermarket shelves - lemons one week, limes the next...

No comment yet.
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More than half of UK firms plan to hire new staff

More than half of UK firms plan to hire new staff | Macroeconomics: UK economy, IB Economics | Scoop.it
The number of firms planning to make staff redundant in the first quarter of 2021 is also falling.
Graham Watson's insight:

So much for all the doom and gloom surrounding the coronavirus, it seems as though the end of lockdown is nigh, with schools seemingly scheduled to return on 8 March, and now this - optimistic news about job prospects, with a majority of employers seemingly looking to start hiring new staff in the next three months. 

 

Good news - although have we really reached peak unemployment? I'm not convinced, although if we have, then I also suspect that the way that unemployment is calculated might not be fit for purpose. 

No comment yet.
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How can we create new jobs?

Following the Covid-19 lockdown, the UK labour market faces much higher unemployment and reductions in labour force participation as some groups withdraw from the labour market.
Measures such as the Coronavirus Job Retention Scheme and the Self-employment Income Support Scheme served a useful purpose, but governments cannot keep businesses on life support indefinitely. Job protection measures risk substantial harm if they hinder the adjustment of the labour market to changing conditions.

In this video, Len Shackleton, IEA Editorial and Research Fellow, explains how we might go about boosting job growth.

Graham Watson's insight:

Len Shackleton at the IEA looks at solutions to the current unemployment situation, arguing that many of the proposed solutions - investment in technology, increased infrastructure investment, jobs subsidies.

 

He argues that most of the solutions posited by the state are inefficient, and instead look for solutions in the free market, via deregulation. Who would have thought that the IEA would hae thought this.

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HS2 rail project work begins with pledge of 22,000 jobs

HS2 rail project work begins with pledge of 22,000 jobs | Macroeconomics: UK economy, IB Economics | Scoop.it
Work on the controversial rail line formally starts on Friday, with Boris Johnson saying it will "fire up growth".
Graham Watson's insight:

And so it begins, with the work on HS2 formally starting on Friday, as the Prime Minister's pledge to invest in infrastructure takes shape. 

 

It is a controversial project, but there's no doubt that it is increasing aggregate demand, creating jobs and is likely to enhance the nation's productive capacity. 

 

There are those who protest about the adverse environmental effects, and who debate the need for the scheme, but it's beginning - at last.

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Jobs: Demand for workers picks up in early August

Jobs: Demand for workers picks up in early August | Macroeconomics: UK economy, IB Economics | Scoop.it
Recruiters say the number of new job ads suggests that a slow recovery could be underway.
Graham Watson's insight:

Some soft data from recruiters suggesting that labour markets are picking up, with demand for workers in certain sectors and certain parts of the country. 

 

Hope springs eternal.

No comment yet.
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Sunak and Hunt to host 200 UK industry leaders to drum up investment | UK news | The Guardian

Sunak and Hunt to host 200 UK industry leaders to drum up investment | UK news | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Meeting of prominent business executives will focus on creating jobs in hi-tech sectors to revive economy
Graham Watson's insight:

Much sound and fury signifying nothing, or something that's going to generate investment, a multiplier effect, job creation and a boost to the supply-side.

 

I know where I stand. 

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First UK coal mine in decades approved despite climate concerns

First UK coal mine in decades approved despite climate concerns | Macroeconomics: UK economy, IB Economics | Scoop.it
Climate experts and Tory MPs argued the Cumbria mine would scupper UK efforts to lower emissions.
Graham Watson's insight:

This could be Microeconomic, given the environmental implications of opening the new coal mine - and it is this that has sparked controversy.

 

However, in this case, I've scooped it because of the regional implications - the news that the mine is to open has been welcomed by the local mayor because of its capacity to create jobs. Of course, this will be both as a direct effect of the new mine, but also because of the regional multiplier associated with it.

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UK set to have world's biggest automated drone superhighway

UK set to have world's biggest automated drone superhighway | Macroeconomics: UK economy, IB Economics | Scoop.it
Reading, Cambridge and Rugby are among the places set to be connected by drones.
Graham Watson's insight:

It seems as though the UK is going to expand its investment in drone technology, with the creation of a drone superhighway and focus on specific uses for drones to deliver mail to remote communities and medicines across Scotland. If successful, this would represent a significant boost to the supply-side and possible job creation in the sector. 

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Lower inflation, better jobs … in France la vie est belle | Economics | The Guardian

Lower inflation, better jobs … in France la vie est belle | Economics | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Emmanuel Macron’s reforms have seen the country pull ahead of the UK on most economic measures
Graham Watson's insight:

Phillip Inman looks across the Channel noting that French reforms might mean that French living standards exceed ours. He argues that not only has economic growth meant that the French economy is now 1% larger than it was pre-pandemic, inflation is lower than in the rest of Europe, the economy is creating better quality jobs and levels of business investment are higher. 

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Britishvolt: Electric car battery plant gets government funding

Britishvolt: Electric car battery plant gets government funding | Macroeconomics: UK economy, IB Economics | Scoop.it
Britishvolt says the money unlocks huge private investment for a protect that will create thousands of jobs.
Graham Watson's insight:

Britishvolt have announced that they have secure government funding to build a gig-factory in Northumberland to manufacture car batteries in the North East. 

 

It seems as though the government have committed £100m from 

the Automotive Transformation Fund, with private investors supplying the bulk of the investment. It represents a sizeable regional multiplier and will create jobs in a region where there's a need for them.

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More work needed to create green jobs, report says

More work needed to create green jobs, report says | Macroeconomics: UK economy, IB Economics | Scoop.it
Efforts to create "green jobs" need to intensify if the government is to meet its target, a report says.
Graham Watson's insight:

How green is your growth? Not green enough, according to PwC who estimate that despite the government announcing in November 2020 that £4bn would be spent on creating up to 250,000 new green jobs as part of its plan to hit net zero emissions by 2050, not enough has been done to turn this into a levelled up reality.

 

The flipside of this is that others - notably the TUC believe that if the government is unable to achieve net-zero as quickly as our trading partners, it could cost nearly 660,000 jobs. 

Jalen Thomas's curator insight, December 7, 2021 12:05 AM
This article is saying how many of today's government should be moving toward more green jobs. What is a green job? A green job is a job that directly contributes to tackling climate change, although many think it should also cover roles that indirectly support that ambition. The future will be headed towards more green jobs.
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EUR - Euro
USD - US Dollar
DNR - DINAR
GBP - British Pound
INR - Indian Rupee
AUD - Australian Dollar
CAD - Canadian Dollar
AED - Emirati Dirham
ZAR - Rand
CHF - Swiss Franc
CNY - Chinese Yuan Renminbi
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THB - Thai Baht
NZD - New Zealand Dollar
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Scooped by Graham Watson
Scoop.it!

UK businesses pushed to raise prices amid record jump in costs | Economics | The Guardian

UK businesses pushed to raise prices amid record jump in costs | Economics | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Analysts say reports of high demand and jobs growth could give green light for interest rate increase
Graham Watson's insight:

The latest IHS Markit data suggests that businesses are looking likely to pass on rising costs to consumers. According to manufacturers, the rate at which they passed on increased costs to consumers was at its highest rate for 20 years. The service sector, however, was unable to pass on cost increases because of consumer resistance.

 

Factor in some evidence suggesting strong demand and jobs growth, and an interest rate rise in December becomes more likely, although the prospect of higher costs of living and taxation may eat into demand in 2022. 

divine's curator insight, December 20, 2021 4:06 AM

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Foreign investment deals to create 30,000 UK jobs, says government

Foreign investment deals to create 30,000 UK jobs, says government | Macroeconomics: UK economy, IB Economics | Scoop.it
The prime minister will announce 18 new foreign investment deals in low-carbon sectors worth £9.7bn.
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FDI. The multiplier effect. Green investment. 

 

It's all here. Although the largest single investment is by Iberdrola, which owns Scottish Power...

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US economy adds more jobs than expected in July

US economy adds more jobs than expected in July | Macroeconomics: UK economy, IB Economics | Scoop.it

US employers added 943,000 jobs in July, while the unemployment rate fell to 5.4%.

Graham Watson's insight:

It seems that the US recovery is picking up, with 943,000 jobs being created and unemployment falling to 5.4% as a result. 

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UK regions compete to host 'gigafactory' for electric car batteries | Business | The Guardian

UK regions compete to host 'gigafactory' for electric car batteries | Business | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
Government expected to unveil funding and plans for battery-making factory in near future
Graham Watson's insight:

As part of the planned Green New Deal, it seems that a gigafactory building electric car batteries is going to be one of the biggest 'prizes' that a region can win - and a number of areas, including the West Midlands are looking to attract this inward investment.

 

It would create jobs, generate a positive multiplier effect and help achieve the government's ambitious new environmental targets.

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Amazon to create 7,000 UK jobs

Amazon to create 7,000 UK jobs | Macroeconomics: UK economy, IB Economics | Scoop.it
The online retail giant is recruiting at more than 50 sites in response to growing customer demand.
Graham Watson's insight:

Job creation, and its associated effects.

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Tesco's 16,000 jobs drive to reward lockdown temps

Tesco's 16,000 jobs drive to reward lockdown temps | Macroeconomics: UK economy, IB Economics | Scoop.it
The supermarket says people hired to deal with a surge in deliveries will get permanent roles.
Graham Watson's insight:

At last, a story of job creation, with supermarket Tesco creating 16,000 new jobs in response to the shift towards online grocery retail. In many cases, temporary staff hired at the start of lockdown are going to get these jobs. 

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