Background

Employment Market

The United Kingdom (UK) continues to be a leading world trading power and financial centre. It has the second largest economy in Europe and has enjoyed one of the longest periods of sustained economic growth in the last 150 years.

The country’s labour force is the second largest in the European Union (EU) with approximately 30.4 million people as of 2008, according to Eurostat's Employment in Europe 2009 report. The employment level (proportion of working age people employed) in the UK was approximately 71.5 percent in 2008, which was notably higher than the EU-27's average of 65.9 percent.

The UK labour force is projected to continue growing, but at a slower rate, until 2020. The number of economically active people is projected to reach 32.1 million by 2020. While the total number of people employed and unemployed aged 16 and over is forecasted to decline to 61.7 percent, the activity rate of people of working age (16-59/64) will rise to 79.8 percent by 2020. Employment prospects may look good for the long-term, but the weaker economic recovery expected for 2010 means the already record high unemployment rate will likely climb even further.

The Department for Work and Pensions holds overall responsibility for all work and pension matters, as well as public expenditure issues in the UK.