Specific Economic Problem Currently Affecting UK - Essay Example

Specific Economic Problem Currently Affecting UKThe topic that I have chosen is unemployment of youth (teenagers and young adults between 16 -24 years) across United Kingdom. It should be highlighted that UK’s economy was adversely impacted due to worst recession of 2008 - 2009, which led to the significant decline in aggregate consumption. For instance, the slump in total output forced organisations to downsize, thereby resulting in unemployment of professionals, experienced and youth workers (Grice, 2009).

Although, UK economy has shown some important; however, the grave issue of youth unemployment has still not completely resolved. Youth unemployment has a significant impact on society because teenagers tend to finance not only their personal expenditures and family but also their educational expenses. Therefore, unemployment compels youths to put a halt to their academic life, which later creates problems in finding high-paid jobs and career advancement in future. UK unemployment figures peaked in 2009 when around one million or 20% youths became unemployed after retrenchment policies of domestic and multinational corporations (Telegraph Article, 2009).

It is worthwhile to mention the fact that employment discrimination also became evident across UK when research results compiled by a credible think tank named ‘The left-leaning Institute for Public Policy Research’ confirmed that 50% of black youths were found unemployed in comparison to only 20% of white youths (BBC Article, 2010). As far as the solutions to youth unemployment are concerned, it is worth mentioning that government authorities should announce special internship / apprenticeship programmes for youth workers (with at least high school education) and fresh graduates so that they could obtain practical work experience and insight over what they have learned during their academic life (Allen, 2010).

In this way, the existing gap between the fresh and experienced candidates could be minimised as youth would become more competent and professional. Nevertheless, it should be recalled that only fittest survive in a free market system. Another solution is to increase number of scholarships for students so that they would continue their education without any fear of finances. Also, the labour supply side would not have to face unnecessary pressure since fewer youths would be eager to apply for part-time jobs during their academic life.

Another solution is to enhance interest of youth towards self-employment (personal business) as well as providing necessary business training so that probability of monetary losses could be minimised. The aforementioned solutions are realistic because UK government could initiate apprenticeship and business training programmes through public – private partnerships. However, government could problems in providing additional scholarships to students because of its financial difficulties that have led to educational budget cuts.

SourcesAllen, Katie (2010). Youth unemployment rising in most regions, TUC study shows. Guardian [Online] Available at http://www.guardian.co.uk/business/2010/aug/11/unemployment-youth-recession-job-lossesBBC Article (2010). Half of young black people unemployed, says report. BBC News [Online] Available at http://news.bbc.co.uk/2/hi/uk_news/8468308.stm Grice, Andrew (2009). Youth unemployment rate to top Cabinet's Agenda The Independent [Online] Available at http://www.independent.co.uk/news/uk/politics/youth-unemployment-rate-to-top-cabinets-agenda-1753011.

htmlTelegraph Article (2009). British youth unemployment hits record high. The Telegraph [Online] Available at http://www.telegraph.co.uk/finance/economics/6542812/British-youth-unemployment-hits-record-high.html