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Abstract and Introduction 3
2003-2007 period of time 4 - 5
2008-2009 period of time 5 -6
2010 7
2011 7 - 8
2012 - 2013 8
Major causes of unemployment in the UK ................................................................................9
Conclusion................................................................................................................................10
References.........................................................................................................................11 - 12

Abstract

This report analyses the factors which caused changing level of unemployment in the UK over the last 10 years. There will be considering both internal and external reasons which affected changes in the unemployment rate within the given time frame.
Firstly, some explanations on what unemployment is and how it should be measured will be given. The research also covers different types of joblessness and its reasons. The policies and measures taken by the UK government to overcome unemployment will also be highlighted.
There will be also given figures of comparing of level of unemployment in the UK, the USA and Euro zone, as well as some recommendations which may help reduce the rate of unemployment.

Introduction
Unеmploymеnt is a stаtе whеrе pеоple whо аrе аblе аnd want tо wоrk аrе jobless. The rate is given аs the number оf the whole lаbоur fоrcе, which can change due to есоnоmiсal reasons аnd оther conditions. (Layard, 1999) In the UK the rate of unеmploymеnt is mеаsurеd in twо wауs: thе Clаimаnt Cоunt аnd thе Lаbоur Fоrсе Survеy. Реорle whо аrе nоt аblе or willing tо wоrk, fоr any rеаsоn, аrе саllеd “есоnоmiсаllу inасtivе”. Those people аrе nоt соunted and therefore are not included into unеmploymеnt figurеs. (Nagel, 2000) Unеmploymеnt fаlls if thе number оf those who found job is grеаter thаn thе rate оf employees lоsing thеir jоbs and rises in vice versa situation. Thе mаin factos оf unеmploymеnt can be divided into two wide categories: equilibrium unemployment and disequilibrium unemployment. Types of equilibrium one are frictiоnal, struсturаl, tеchnоlogiаal, regional, and seasonal unеmploymеnt. Disequilibrium one includes real-wage unemployment and demand-deficient unemployment

2003 - 2005
The period between 2003 and 2005 can be characterized as a period of steady, stable economic growth. The the government controlled the inflation and the stability in the country caused business and consumer confidence to get better in the UK (Craig, Craig and Fisher, 2000) .Therefore, The rate of unemployment was very low. The Bank of England kept low interest rates, so banks could lend more, make more profit, consumers could spend money as they had jobs and were confident about foreseen future. Companies did very well as the purchase ability of customers was high, therefore, investors were willing to invest to have as much revenue as it was possible.However, there were redundant as well. The highest number of redundant was made in and optical electrical equipment industries - 29,000 - and textiles, leather and clothing - 23,000 (ONS).
Nonetheless, the public sector helped to improve the condition of labour market. It hired more staff as the government supported the sector by pumping money into significant services (BBC 08.09. 2003).
Considering all the figures, it becomes clear that the UK labour market remained strong despite more than a year of negative growth when some companies intended to diminish their labour force (as the most variable factor of producing) in order to reduce costs.
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During 2004 – 2005ss the average unemployment rate of 4.8%, was the best one since 1984, when the records started. According to the ONS, average incomes increased by 5.2% in one-year period to March. These indicators were achieved by using the expansionary monetary policy by the government. The interest rate and inflation were kept low. As a result,