The Labour Market Sector UK - Essay Example

?Running head:  Marketing Intelligence Report Insert        Insert Grade Insert 12 January Marketing Intelligence Report The Labour Market Sector UK Introduction The demand for labor in the United Kingdom is influenced by the availability of skills, expertise, and knowledge in the country. Different types of labor are required in the country to meet the demand of labour in various sectors. According to HRM in context (N.d, p90), a labour market can be described as a mechanism through which labour is purchased and sold as a commodity. Labor demand is the number and types of jobs available in a country, whilst labour supply is the number and types of employees available. Therefore, the labour market of a country consists of a relationship between workers and work. The marketing intelligence of the labor market is important in that, one is able to relate the labor supply and labor demand of a country, and determine how the two aspects correlate with each other. Internal labor market refers to an organization’s internal supply of labour, whereby, employees are assigned specific roles in an organization. The human resources in that particular firm concerns itself with the needs of employees such as training and development, retention, and job security among others. The external labor market represents the external supply and availability of labour. A country’s eternal supply of labor could be regional or internally, which may involve immigrants relocating into the host country (HRM in context, N.d, p.93) The main aim of this report is to demonstrate my knowledge of the marketing intelligence in the United Kingdom labor market, via the use of both secondary and primary sources and theories as well. This report will focus on the labour market sector in the United Kingdom, bringing forth, a better understanding of the labor market and its performance over the years. Justification of methods used The main methods that will be used in this report are secondary and primary methods; however, secondary sources are most preferred, as they give accurate data, which cannot be found in primary sources. They are also less expensive compared to primary data that involves questionnaires and interviews. Secondary data already exists, for instance, Euromonitor and UK government statistics will offer genuine information regarding the labour market for several years. It also saves on time and assists in improving primary data by making it more specific; such sources include Euromonitor, keynote, national statistics, and the guardian and other academic sources, which will be applied to this report. According to FAO (N.d), secondary data availability contributes to the fast way of reaching to conclusions due to the quality of information these sources contain. In addition, secondary data is effective in solving problems by assisting the researcher to understand the actual problem. Reid and Bojanic (2006 p209) argue that the advantages of using secondary data sources include less cost, timeliness whereby an individual can access information very fast as opposed to waiting for weeks for the data to be collected and analyzed. In addition, frustration is reduced as the researcher can access the required information from appropriate sources. Primary data collection sources are advantageous, as data is collected straight from the population, for instance, with the use of questionnaires and interviews, hence providing original data and unbiased information. According to Goeldner and Ritchie (2009), primary data sources are original as they involve the actual collection of data; however, secondary data needs to be collected first before collecting primary data. Therefore, secondary data should be exhausted first before opting for primary data collection. According to Weinreich (2006), quantitative research techniques produce quantifiable reliable data especially when generalizing larger populations. Therefore, quantitative research provides a clear picture of the expectations of a research. This research involves questionnaires and surveys as tools for data collection. In addition, this research will include quantitative research method due to its quantifiable nature; it will appear in form of graphs and tables, while qualitative research methodologies involve interviews, observation, or focus groups; this method generates detailed and rich data for the research. Qualitative research uses both structured and non-structured interviews, and documentary analysis; therefore, data is presented in form of words. Fig 1. Difference between qualitative and quantitative research Qualitative research Quantitative research Objective To gain an understanding of underlying reasons. To provide insights into the setting of a problem, generating ideas and hypotheses for later quantitative research To uncover prevalent trends in thought and opinion ? To quantify data and generalize results from a sample to the population of interest ? To measure the incidence of various views and opinions in a chosen sample ? Sometimes followed by qualitative research which is used to explore some findings further Sample Usually a small number of non-representative cases. Respondents selected to fulfill a given quota. Usually a large number of cases representing the population of interest. Randomly selected respondents. Data collection Use of Unstructured or semi-structured techniques e.g. individual depth interviews or group discussions. Structured techniques such as online questionnaires, on-street or telephone interviews Data analysis Non-statistical. Statistical data is usually in the form of tabulations (tabs). Findings are conclusive and usually descriptive in nature. Outcome Exploratory and investigative. Findings are not conclusive and cannot be used to make generalizations about the population of interest. Develop an initial understanding and sound base for further decision making. Used as a recommendation for action. (Snap surveys, 2012) According to Limpanitgul (2009), sampling is the selection of a fraction of a whole population, which researchers can use to make the conclusion. This conclusion assists in achieving a research objective. This argument pertaining a sample procedure is based on Churchill and Iacobucci’s (2002) and Wilson’s (2006) suggestions, (Limpanitgul 2009). It includes defining the target population, identifying the sampling frame to be used, selecting a sampling method, determining the sample size and collecting data from the actual determined sample. Marketing research society guidelines This research will be influenced by MRS new code principles, which require the researcher to ensure participation in the research activities is voluntary; the researcher is also required to be honest in their professions (MRS code of conduct, 2010). It will also be based on transparency in purpose of data collection, and confidentiality of information will be respected as well as their respondents. As a researcher, the respondents shall not be harmed as a result of the information given; the reputation and integrity of the profession shall be protected. Respondents will be informed of any proceedings beforehand, such as recording or monitoring; this will foster ethics while conducting research on the labor market. The main ethics applied to this research is the protection of respondents while providing the public with vital and true information. Findings Secondary findings According to the Euromonitor (2011), the United Kingdom labour market is deteriorating as a result of employee lay offs due to the poor economy of the country. The level of unemployment rate under the age of 25 is evident in the country, as it rose from 15% in 2008 to 21% in 2011. Lack of literacy and poor mathematical skills have been blamed for the high unemployment rates; in addition, the United Kingdom has over the years preferred to employ educated graduates from foreign countries, and as a result, contributing to high unemployment rate for UK youths (Euromonitor 2011). The lack of labor supply in the United Kingdom has led to many unemployed youths in the country and as a result, the country’s finances have been strained due to the high expenditure on welfare and social benefits, which have risen from ?197 in 2007 to ?224.2 in 2010. In addition, the UK government is trying to reduce unemployment rate by offering “golden halos” to companies who employ individuals who have been employed for 6months (Euromonitor 2010). According to management issues (2004), labor shortage existed in 2004 as a result of low fertility rates and a large number of an aging population. The government feared the huge strains retirement systems would cost, since the economic output is determined by the labour force and productivity. This is contrary to the present day when the government’s main fear is the unemployment rates, which result to huge amounts of social and welfare benefits. Fig 2: unemployment rates from total population in the UK; 2005-2011 (Euromonitor 2011) In addition, the guardian (2010) indicated that the unemployment rate was still high and was expected to have risen to 7.9%, claiming many jobs. The labor market statistics (2011) indicated that the unemployment rate in the United Kingdom was 8.6% of the active population, leaving 2.64 million unemployed, marking the highest ever since the 90s. The diagram below shows a single month estimate for October 2011 for ages 16-64, released on 14 December 2011. Fig 3. Single month estimate for October 2011 for ages 16-64 (Office for national statistics, 2011) In most cases, immigration has been blamed for high rate of unemployment, whereby, the United Kingdom government prefers hiring educated foreigners, as a result leaving the unskilled citizens unemployed. Migration impacts on the labor market in different ways, first, many migrants come from low wage economies, and as a result, the United Kingdom companies tend to increase the supply of labor at low wage rates. Nevertheless, the migrants are willing to work for such low wages, as they seem fair to them compared to the wages in their home country. According to Dustmann, et al (2003, p.16), the migrants affect the labor markets of the host country, as the increase in the number of immigrants reduces their wages. In addition, economic theory explains the consequences immigration has on the labor market in the UK; immigration affects the skill composition of labor force in the UK. For instance, if the skill composition of the immigrants does not match those of the citizens, there will be disequilibrium between supply and demand of different types of labor (Dustmann, Fabbri, and Preston, 2005, p.325). Immigration may dress the wages and employment opportunities for the natives, as most immigrants are unskilled; as a result, the employers pay low wages for their services. Therefore, employers may prefer hiring the immigrants to reduce on labor costs and increase their profits. Most employers in the UK argue that they hire immigrants to do shoddy jobs that the domestic workers cannot do, however, this statement has been criticized, arguing that employers are interested in cheap labour, which is easily exploitable. Rather than hiring domestic workers and improving their wages and work conditions, immigrants should not be blamed for labour shortages in the country (the migration observatory, 2011). The UK immigration policy acknowledges the admission of immigrants, only if they have a job offer in the UK. Therefore, immigrants come to the UK upon a job offer, and UK employers are liable for the labour shortage among domestic workers. In addition, the effects of immigration on the labour market is influenced by the skills of the immigrants, skills of existing domestic workers and the nature of a country’s economy. Nevertheless, there are factors that affect demand of labor in the United Kingdom, for instance, the higher the wage rate the lower the demand for labor. This is because companies look for cheaper labor when the wage rate is high. They opt for cheap labor with an aim of reducing on the labor costs, hence preventing their profits from dropping. Therefore, the demand for labor falls with the increase in wages. Fig 4. The rate of Wages and demand for labor (Economics online 2011) Another factor that influences the demand for labor is the monopolistic factor, whereby, if a market is dominated by one employer, the demand for labor is lower compared to when the market is dominated by many employers. The higher the wage rate, the higher the supply of labor; this is because many individuals will be willing to work because of the fair wages (economics online, 2011). In addition, there is an existing gap between the wages of skilled and unskilled individual in the country. The main contributing factor is technological change, which increases the productivity of skilled workers, leaving the unskilled workers at a disadvantage. In addition, globalization has affected the unskilled negatively; this is as a result of the existing competition for skilled employees, therefore generating a gap between the skilled and the unskilled employees. Needless to say, the government can also influence the labor market by setting the national minimum wage; in the UK, the minimum wage rate since 1999 is set at ?3.60. The national minimum wage rate aims at excluding poverty among the employees; however, low pay can arise from labor market failures. Lack of access to labor market can be caused by discrimination, lack of bargaining power by a job seeker as a result of a monopolistic market and lack of the required skills (economics online 2011). According to the guardian (2012), the United Kingdom labour market is becoming weak as the demand for fulltime and part-time employees falls, an indication that the job market is still tough; the guardian also indicates that migrants have little effect on the jobless levels. The current nature of the UK labor market is stable, though not favorable, as many remain unemployed; therefore, there is need for action from the government, especially in creation of jobs for the youth. Primary findings Having utilized the secondary data sources for this report, findings have not been exhausted. As a result, there is need for primary findings, which will use quantitative research techniques. The main objective of the research is to acquire market intelligence on the labour market of UK. This involves factors that affect the labour market of the country, among them being the economy and immigration. Therefore, qualitative and quantitative research would be used in finding out the public views on the current deteriorating labour market. Qualitative research involved accessing views from several citizens regarding the labour market whereby, 100 members of the public were issued with questionnaires. 50 men and 50 women participated, ranging from the age of 25 – 55. Among them 30 were immigrants, 20 male and 10 female participants. Fig 5. Qualitative analysis; number of respondents Respondents (100) Number of respondents United kingdom natives 70 Male 40 Female 30 Immigrants 30 Male 20 Female 10 The quantitative research was conducted using questionnaires among post-graduate students from different universities, and the public, mainly citizens of the UK. The dependent variable will be labour market and independent variables will include immigration, economy, discrimination, and unemployment. Moreover, 100 questionnaires were distributed comprising of question related to the UK labour market. Results indicated that 35% of the respondents emphasized that immigration has contributed to scarcity of jobs in the country. However, 10% agreed to the fact that employers are partially to blame for the scarcity of jobs in the country. While another 10% blamed the government for the high rises of unemployment, 15% attested that discrimination played a role in the high rates of unemployment. In addition, 20% agreed that the lack of appropriate skills contributes to unemployment. Moreover, 10% of respondents blamed the nature of the economy as the main reason for limited labor supply. The qualitative research was challenging, as not many individuals were willing to be interviewed on the streets, viewing it as a waste of time. Therefore, substantial data was not collected, which resulted to the use of quantitative research method. Fig 6: Results: quantifiable data Factors influencing labour markets Respondents (100) Agreed Immigrants 35% Economy 10% Discrimination 15% Employers 10% Government 10% Lack of skills 20% The finding above indicate that a high number of participants views immigrants as the main cause of job scarcity in the country, while the economy, employers and government are least blamed for the unemployment levels in the country. However, according to the migration observatory (2011), immigrants are not to blame for the job shortages in the country; they are issued work permits only when they are hired by a UK company. Therefore, the employers discover a need for personnel to fill in the vacant positions, thereafter deciding on whom to hire, a migrant or a domestic worker. Surprisingly discrimination ranks the second as the main cause of high rates of unemployment. Discrimination of an individual can be based on their ethnic background is common in the United Kingdom; this is because most people prefer associating with people of their own race. Recommendation Relating to the above findings, it is clear that the United Kingdom labor market has its flaws. This is as a result of the high unemployment rate is evident in the country especially among the youth. To curb this high rate of unemployment, the government should recruit from foreign countries only after exhausting the internal market. This strategy will give room for the graduates to access the employment opportunities in their country, as a result reducing the high levels of youth unemployment. In addition, strict measures should be applied regarding discrimination by companies; fostering a friendly environment with different employees from different ethnic groups. The United Kingdom needs labour force to maximize on productivity; however, if the government does not create opportunities for employment, their citizens will be forced to search for jobs internationally. As a result, the country may experience low demand for job, which will contribute to low economic growth. Nevertheless, lack of jobs contributes to unethical activities, such as criminal activities, with an aim of earning an income. Therefore, marketers in the United Kingdom should play a role in providing employment especially to the youth, as they are skillful and innovative. The young graduates are flexible to change, and adapt well to technological change, therefore they will be able to apply their new skills at work, placing the company at a competitive advantage. Conclusion The main aim of this report was to attain market intelligence in the labour sector of the United Kingdom. As a result, quality information has been achieved through this research, and I have a clear understanding of the labour market and the factors that influence it. A country needs a labour force in order to improve on its productivity, therefore, fairness should be observed when dealing with employment. A country should also be in a position to provide employment for its citizens; as a result, the government will reduce on its expenses generating from unemployment benefits. Reference List Dustmann, C. 2003. The local labor market effects of immigration in the UK. Retrieved from http://eprints.ucl.ac.uk/14331/1/14331.pdf Dustmann, C. Fabbri, F and Preston, I. et al. 2005. The impact of immigration on the British labour market. The Economic Journal, 115, F324–F341. Royal Economic Society 2005. Published by Blackwell Publishing. Retrieved from http://www.ucl.ac.uk/~uctpb21/Cpapers/ecoj_1038.pdf Euromonitor. 2011. UK youth unemployment hits record high. Retrieved from http://blog.euromonitor.com/2011/12/uk-youth-unemployment-hits-record-high-.html Euromonitor. 2010. Regional Focus: Youth unemployment remains high in Western Europe. Retrieved from http://blog.euromonitor.com/2010/05/regional-focus-youth-unemployment-remains-high-in-western-europe.html Economics online. 2011. The labor market, United Kingdom. Retrieved from http://www.economicsonline.co.uk/Competitive_markets/The_labour_market.html FAO. N.d. Secondary Sources of Information; Marketing research and information systems. Agriculture and Consumer Protection publisher. Retrieved from http://www.fao.org/docrep/W3241E/w3241e03.htm Goeldner, C. and Ritchie, B., 2009. Tourism: Principles, Practices, Philosophies. 11th Edition. NJ: John Wiley and Sons Publisher. HRM in context. N.d. The labor market context of HRM. Retrieved from http://www.sagepub.com/wilton/The%20Labour%20Market%20Context.pdf Labour Market Statistics. 2011. United kingdom. Retrieved from http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/december-2011/index.html Limpanitgul, T., 2009. Methodological Considerations in a Quantitative Study Examining the Relationship between Job attitudes and Citizenship Behaviors. Retrieved from http://www.edamba.eu/userfiles/file/Limpanitgul%20Thanawut.pdf The migration observatory. 2011. The labour market effects of immigration. Retrieved from http://migrationobservatory.ox.ac.uk/policy-primers/responding-employers-labour-shortages-and-immigration-policy The guardian. 2012. UK labour market shows drop in permanent and temporary jobs. Retrieved from http://www.guardian.co.uk/business/2012/jan/11/uk-labour-market-jobs-drop?newsfeed=true The Guardian. 2010. Labour market report to show outlook for jobs worse than OBR projections. Retrieved from http://www.guardian.co.uk/business/2010/jul/14/unemployment-jobs-economic-growth Management issues. 2004. The labour shortage time bomb. Retrieved from http://www.management-issues.com/2006/8/24/research/the-labour-shortage-time-bomb.asp MRS code of conduct. 2010. Standard & guideline. Professional standards. Retrieved from http://www.mrs.org.uk/standards/codeconduct.htm Office of national statistics .2011.UK employment rates 16-64, seasonally adjusted. Retrieved from http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/december-2011/single-month-labour-force-survey-estimates--december-2011--not-designated-as-national-statistics-.html#tab-UK-employment-rates-16-64--seasonally-adjusted- Reid, R. and Bojanic, D. 2006. Hospitality marketing management. Fourth Edition. NJ: John Wiley and Sons Publisher. Snap surveys. 2012. Retrieved from http://www.snapsurveys.com/techadvqualquant.shtml Weinreich, N., 2007.Integrating Quantitative and Qualitative Methods in Social Marketing Research. Retrieved from http://www.social-marketing.com/research.html APPEDIXES This form shall be completed by any voluntary individual; it is based on a current research concerning the United Kingdom labour market. The questions are straight forward but require a brief explanation. Thank you in advance for completing the questionnaire. Questionnaire Questionnaire on the United Kingdom labor market. 1. Please state your gender Male Female 2. choose your age group 18-24 25-35 36-45 46-55 3. Choose your ethnicity British Immigrant 3. Has the increased level of immigrants contributed to the high rates of unemployment in the country? YES NO Explain ………………………………………………………………………………. ……………………………………………………………………………………. 4. Are the employers in the United Kingdom contributing to the high levels of unemployment? YES NO Explain ………………………………………………………………………….. ……………………………………………………………………………………… 5. Has the government played a role in the existing levels unemployment? YES NO Explain………………………………………………………………………. ………………………………………………………………………………. 6. Does lack of appropriate skills contribute to low labour supply in the UK? YES NO Explain ……………………………………………………………………. ……………………………………………………………………………… 7. Is the United Kingdom’s economy favorable for the job supply? YES NO Explain……………………………………………………………………. ……………………………………………………………………………… Is the current economy a challenge for the labor market? YES NO Explain……………………………………………………………………. …………………………………………………………………………….. Thank you for your voluntary contribution and kind gesture, your contribution will be a great help for the completion of my research. Table of results: Findings results Factors influencing labor markets Respondents (100) Agreed Immigrants 35% Economy 10% Discrimination 15% Employers 10% Government 10% Lack of skills 20% Nature and number of respondents Respondents (100) Number of respondents United kingdom natives 70 Male 40 Female 30 Immigrants 30 Male 20 Female 10 Read More