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Underemployment in the UK in the Great Recession

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  • Bell, David N.F.
  • Blanchflower, David G.

Abstract

One of the main puzzles associated with the Great Recession has been the muted increase in recorded unemployment in the UK. In this paper we explore possible explanations for the behaviour of the UK labour market during the period of the recession. We establish that there has been significant underemployment, which partly explains the sluggish increase in unemployment, but also means that (i) significant numbers of workers are supplying fewer hours of work than they would like and (ii) when recovery comes, profit maximising employers are likely to increase the hours of existing workers, rather than making new hires. This particularly disadvantages the young. Our new analysis points to significant levels of underemployment among younger age groups — whether this is measured in relation to their actual hours of work, their desired hours of work, or their labour force participation.

Suggested Citation

  • Bell, David N.F. & Blanchflower, David G., 2011. "Underemployment in the UK in the Great Recession," National Institute Economic Review, National Institute of Economic and Social Research, vol. 215, pages 23-33, January.
    • Handle: RePEc:cup:nierev:v:215:y:2011:i::p:r23-r33_13
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    Cited by:

    1. Nandi, Alita & L. Bryan, Mark, 2015. "Working hours, work identity and subjective wellbeing," ISER Working Paper Series 2015-21, Institute for Social and Economic Research.
    2. Venke Furre Haaland, 2016. "The lost generation: Effects of youth labor market opportunities on long-term labor market outcomes," Discussion Papers 835, Statistics Norway, Research Department.
    3. Fontanari, Claudia & Palumbo, Antonella & Salvatori, Chiara, 2022. "The updated Okun method for estimation of potential output with alternative measures of labor underutilization," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 158-178.
    4. Fairlie, Robert W & Fossen, Frank M, 2018. "Opportunity Versus Necessity Entrepreneurship: Two Components of Business Creation," Santa Cruz Department of Economics, Working Paper Series qt0rd0g01g, Department of Economics, UC Santa Cruz.
    5. Antonios Maragakis & Andy van den Dobbelsteen & Alexandros Maragakis, 2016. "Validating the Need to Include the Economic Returns of Graduates as a Metric of a Higher Education Institutions Level of Sustainability," International Journal of Higher Education, Sciedu Press, vol. 5(4), pages 237-237, November.
    6. Loughrey, Jason & Hennessy, Thia, 2013. "Hidden Underemployment Among Irish Farm Holders 1996-2011," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158849, Agricultural Economics Society.
    7. David N. F. Bell & David G. Blanchflower, 2014. "Labor Market Slack in the United Kingdom," Working Paper Series WP14-2, Peterson Institute for International Economics.
    8. Teita Bijedić & Alan Piper, 2018. "Different Strokes for Different Folks: Entrepreneurs' Job Satisfaction and the Intersection of Gender and Migration Background," SOEPpapers on Multidisciplinary Panel Data Research 1011, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. Geoff Mason & Kate Bishop, 2015. "The Impact of Recession on Adult Training: Evidence from the United Kingdom in 2008–2009," British Journal of Industrial Relations, London School of Economics, vol. 53(4), pages 736-759, December.
    10. David Bell & David Blanchflower, 2015. "Youth unemployment in Greece: measuring the challenge," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.

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