Several large housing developments begin at the same time in a country where employment is already high. The table shows selected economic data before the developments began and during their first year.
| Measure | Before the developments | During the first year |
|---|---|---|
| Income tax and National Insurance receipts | £82.4 billion | £83.1 billion |
| Government spending on out-of-work support | £5.7 billion | £5.4 billion |
| Unemployed workers with relevant construction skills | 74,000 | 39,000 |
| Unfilled vacancies reported by construction firms | 52,000 | 86,000 |
Calculate the change in the government's budget balance resulting from the changes in tax receipts and spending on out-of-work support. Assume that all other government revenue and spending remain unchanged.
Using the data, explain one possible problem for construction firms during the first year of the developments.
65 exam-style questions on OCR GCSE Economics 3.2 Low unemployment, covering 3.2.1 Employment and unemployment, 3.2.2 Measuring unemployment, 3.2.3 Calculate the unemployment rate, 3.2.4 Analyse unemployment figures, 3.2.5 Types of unemployment, and 3.2.6 Causes and consequences of unemployment. Each one has a worked solution and a mark scheme showing where the marks go.