In the second half of 2024, high interest rates and falling consumer confidence have slowed down consumer spending across the UK. Some analysts observe that the sudden dip in aggregate demand has driven a rise in cyclical unemployment. However, the rise of green technology and advanced manufacturing in regions like South Yorkshire offers a potential counterweight. While old fossil-fuel-dependent manufacturing jobs are being phased out, over 15,000 clean energy jobs have been created, though geographical immobility and skill mismatches remain persistent barriers.
Define the term 'cyclical unemployment' (Extract B, lines 3–4).
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.