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The labour market

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Question 2

Extract 3: Paramedics' pay

Increased demand for emergency medical services in 2023, driven by an aging population and extreme weather events, has put immense pressure on emergency responders. The economic impact of these crises is difficult to capture. Gross Domestic Product (GDP) measures the expenditure on rebuilding emergency vehicle fleets and medical equipment but fails to measure the human cost of rising response times and diminished patient well-being. Some economists argue that measures like the Genuine Progress Indicator (GPI) are more useful than GDP for evaluating overall societal welfare.

Paramedics and ambulance staff face increasing workloads and severe burnout. The National Union of Medic Workers (NUMW), representing paramedics in the UK, is balloting for strike action in response to a government pay offer of a 3% wage increase, which is significantly below the current rate of inflation. The NUMW represents over 75% of the ambulance service workforce. However, the union faces a monopsony employer; the National Health Service (NHS) is the dominant buyer of paramedic labor.

Becoming a qualified paramedic requires completing a three-year university degree or an equivalent degree-apprenticeship, alongside rigorous fitness and clinical assessments. Once qualified, paramedics must register with the regulatory body. UK paramedic numbers have fallen by 18% between 2012 and 2023 due to high attrition rates. In 2023, the average paramedic salary stood at £42,200, which is higher than UK median earnings and higher than similar roles in adult social care, though lower than equivalent private sector clinical consultancy roles.


Evaluate, using the information in Extract 3, whether paramedic pay is likely to increase.

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The labour market Questions

  1. A Level
  2. /Economics
  3. /The labour market