Economic Inactivity (Revision Essay Plan)

Here are some thoughts on this question: Examine two possible causes of a fall in the rate of economic inactivity in the UK labour market (8)

Notes

8 mark question – identify, explain two factors and then evaluate their significance:

1. Growth of self-employment and the rise of the Gig economy – increases opportunities for flexible part-time work, not solely for younger workers
2. Impact of a rising national minimum wage + wider implementation of a living wage – increases the incentive to take work, lowers the risk of the poverty trap
3. Fall in pension incomes in part due to very low interest rates – may have caused some people to reverse a decision to retire early and re-enter the labour market
4. Expansion of free child care – universally available to all 3 and 4 year olds and some 2 year olds
5. Falling unemployment rate – there are more jobs available and over 750,000 unfilled vacancies

Evaluation

Which of these factors has been significant? Use your contextual knowledge, draw on other data in extracts provided
Which of these causes have been the result of positive factors?
Can the fall in inactivity be sustained?