UK Economy as the Seventh Largest Economy Worldwide When Measured Using the GDP and the Eighth Largest Worldwide When Measured Using the Purchasing Power Parity

This research will begin with the statement that the UK economy ranks the seventh largest economy worldwide when measured using the GDP, while it ranks the eighth largest worldwide when measured using the purchasing power parity. During the 18th century, UK was the first country worldwide to industrialize, hence contributing positively towards the world economy in the 19th century especially through employment. Consequently, unemployment refers to the rate at which people within a given economy are willing and able to work but cannot find a job because of the prevailing situations. In the UK, the section of the population that is not willing or unable to work based on varied reasons does not count towards unemployment. This is because they are economically inactive and may not participate in processes that focus on improving the economic conditions. However, it is true that when a given country has an elevated level of unemployment, such country is not utilizing the available resources as expected. Unemployment significantly influences the social cost of the affected country because persons with familial commitments may have trouble trying to meet their responsibilities. This is based on the dependency ratio, which may be high. However, unemployment can cause boredom and rejection, thus increasing social problems in the society. In addition, unemployment can result in increased criminal activities in the society. Interestingly, suicide rates and poor health among individuals may also rise. The UK unemployment influences both the economy and societal history of the country. During the 1950s and 1960s, the UK experienced low rates of unemployment. This is because the service members who participated in the Second World War got full employment as a reward for their victory. However, the rate of unemployment in the UK remained low until 2005 when it started to increase.

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