Impact of the Crisis on UK Economy: a brief literature review

National economy of the UK entered the period of recession on the fourth quarter of 2008. Review of literature has found consensus amongst authors about significant negative impacts of the global economic crisis of 2008-2010 on UK economy. The lowest level of recession in UK occurred in June 2009, when the decline of economy has amounted to 5.5 per cent compared to its peak in Quarter 1, 2008 (Vaitilingam, 2010).

According to Bell and Blanchflower (2011), the crisis has resulted in substantial cuts on government spending, reduction on the levels of household spending, and has contributed to the emergence of uncertain and volatile investment climate.

Impacts of the crisis on jobs in the UK have been analysed by Vaitilingam (2010) in a detailed manner. To be more specific, Vaitilingam (2010) assesses job-related impacts of the global economic crisis of 2008-2010 to include increase on the levels of unemployment and regional disparities in Britain’s economic geography. Additionally, Vaitilingam (2010) specifies low-educated and low-skilled employees, as well as, older workers to be most disadvantaged in terms of being negatively impacted from the crisis.

Sobel (2012) draws attention to personal and emotional implications of the crisis to daily lives of people in the UK and elsewhere. According to Sobel (2012) due attention is not paid to this specific aspect of the crisis and the authors stresses the necessity for additional researches in this area.

References

Bell, D.N. & Blanchflower, D.G. (2011) “The crisis, policy reactions and attitudes to globalisation and jobs” WTO

Sobel, A.C. (2012) “Birth of Hegemony: Crisis, Financial Revolution, and Emerging Global Networks” University of Chicago Press

Vaitilingam, R. (2010) “Recession Britain: Findings from economic and social research” Economic & Research Council