It was around that time when the government realised the seriousness of the issue. There are indications that things might be looking up, as we move along with the range of stimulus packages. The unemployment rate in UK experienced a dip of 0.1 percent and it stood at 7.8 percent in January 2010. But this figure is till 1.6 percent higher than that of last year, which makes thinks worrisome for the government (HRM Guide, 2010). Official figures indicate that the average earnings in UK have certainly bounced back in the recent past.1
Fig-1 indicates that there are indeed some recovery signals in the economy, as the earning potential of an average Briton is coming back to the comfortable zone. What could be of some concern however is, the falling graph of earnings in the later part of 2009. Monk (2009) also cites the October 2009 figures from the Office for National Statistics to highlight the higher number of borrowings in UK. The figure stood at 11.4bn in October, far higher than the forecast figure of 7.1bn. The consistent increase of net debt as a percentage of the GDP over the last couple of years has made UK economy more of a debt economy. OCED has also issued warnings to the effect that UK needs to put in place its fiscal measures to unburden itself from the pile of debt. It was predicted by some analysts in 2008, when the initial signals of recession started emerging that during the coming two years UK economy would be experiencing its weakest patch of the last 15 years (BBC, 2008). Well, if trace the journey of the recession, these concerns seems to have come true.
Taking a historical perspective UK had a population of 38 million with GDP of just under 125 billion at constant 1995 market prices. By the end of the century, the population stood at 59 million with an increase of more than 50 per cent while the GDP stood at 800 billion, registering a fivefold increase (Lindsay, 2003). The benefits of globalisation seem to have percolated down to all sections of the society in good measure. The office of national statistics indicated that the unemployment rate in UK in 1900 stood around 5 percent. During the difficult times of 1930s the unemployment rates peaked to around 22 percent, but subsequently as a result of successful implementation of globalisation policies, once again the unemployment rates were below 5 below by the end of 20th century. Recessionary trends have once again brought back focus on the rising unemployment rate The latest figures from the office of national statistics2 indicate that the unemployment rate increased by 0.1 percent points to 7.8 per cent for July to September 2009.
It is worthwhile here to mention that the unemployment rate started increasing particularly around the last quarter of 2007 when recession started showing its impact on economies all over the world. It is therefore quite apparent that while the economies benefitted immensely during the booming days of globalisation, it felt the pinch when the negative trends from other countries started impacting the economic indicators of UK as well.
Over the years, UK has been able to develop into major global force, primarily due to its rapid economic development, which has helped the country in advancing particularly after the second world-war. Strong democratic setup and stability of government coupled with continuity in economic policies are considered as the strong points of the country. The