Demographic trends in UK – Opportunities and threat
British society has changed over the last 50 years. The population is growing slowly. But it is ageing and becoming more multi ethnic minority. Social context in which organisation exist with economic and political contexts imposes constraint upon them. It also provides opportunities and makes threats. Organisation respond to these depends upon their strategic management skill. The high level of awareness of food system by the general public and participation of National Health Service ageing the UK population which make good contribution to national GDP. At the same time the growth of ethnic minorities threatening UK.
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People are important in economy as both producers and consumers. The aim of business is to produce goods or service that people want. This can not take place with out people which is on of the factors of production in economics. Working population is economically active population and it is traditionally drawn from the age group 16-64. as concluded by david Farnham 1999 In 1979 working population was 26 million and it increased to 28.9million in 1990. Also it projected to rise 30 million by 2006. Because of ageing profile of the population is ageing. Also the working population is also ageing. This makes major contribution in the working population.
According to Andrew Harrop, (2004) Over 100 years there has been dramatic fall in death rate in U.K (www.ageconcern.org.uk). Implications of the above in economy as follows,
1. Patterns of demand changes for age groups which will have the implications for production of gods and service.
2. Pensioners do not work but the burden on those in work will increase to pay the support fro the service like health care via taxation.
3. Older people are less mobile than younger people.
The ageing of the population is expected to result in substantial increase in the cost of maintaining health care and pension programs and that is a source of widespread concern. However proper assessment require that attention be given to all categories of government expenditure, including education and others associated with younger age groups, and not just associated with the older people. According to Frank T and Byron G, 1999 it is important to recognise that the population changes affect not only the demand side of economy, but also the supply side i.e the economy’s productive side.
Alistair McConnachie, (2004) states that Britain’s ageing population is a “demographic time bomb” (www.ageconcern.co.uk,10 -11-2004). More over there will not be enough people in job to pay for the cost of demographic change, such as pensions, unless immigration is increased substantially.
In 1990 the highest rates of unemployment were among the young males between 16 and 20 at 20 per cent. This is because of increase of the ageing population in the working population.
According to Andrew Harrop,(2004) at present, the charity estimates that between 430,000 and 1 million people aged 50-69 can be considered potential additional workers. If these people were in employment it would be add between ï¿½12.4 billion and ï¿½29.7 billion to annual economic output. In 2001 6.7 million people over 50 were in paid works in the UK and they contributed ï¿½201 billion to national economical output, approximately on quarter of the total economy. In 2003 there were 20 million people over; by 2021 this will rise to almost 25 million. The report states that if the employment rate for people aged 50-69 increases by just 0.35% a year, then by 2021 economic output will be higher annually than if employment rates remained static(online www.ageconcern.org.uk)
Unpaid contribution to economy
Unpaid work by older people is estimate of ï¿½24 billion contribute to the national economy out put each year. It is equivalent to 2.9 per cent of out put.
Frank. T and Byron.G,(1999) states that although the overall burden of population ageing is manageable, major adjustment will be required in the coming decades especially in the area of provincial sharing.
There are more women than men U.K population. British economical survey says that there are more men in younger age group than women because great no of male births and more no of women in older age group because of the death rate among the women is lower.
David Pierce, (2001) states that participation rate of women were 71 per cent, some what lower than male figure off 88 percent. But in 1979 it was 63 while the corresponding men were 91 per cent. This participation of women increased because of the govt legislation to promote equal pay and treatment. Due to this the role of women in society as a whole is changing (British economical Survey, volume 31 no 1 autumn 2001; pg:21). More over he added in that article in 1971, 38 per cent of women participation was in the work force. It rose 45 per cent by 1997. And report says 90 per cent of increase in work force is due to women entering into labour market. Increase women employment changes the demands of labour market. David Pierce, (1996) states that at 2006 the working age of men will fall while that for women will increase than the present. Consequently the rate of all people of working age will be up (British economical survey, volume 26 no1 autumn 1996). According to the UK consumer trends reports, 2003 UK disposable income has risen along with rise in dual income families. And it states that 71 per cent of the families in UK having dual income.(online www.usembassy.org.uk).
Child birth limits the opportunities of women from gaining promotion, experience and rising to top. There will be an adverse effect if they strive for promotion. Women have the major responsibility for children. The introduction of paternity leave may shift the burden in the future. While the introduction of nursery for all children between 3 and 4 will make easier for women to enter in the labour market.
Since 1945 migrants have come from former British colonies and have been distinctive because of colour, religion and cultures (David Farnham,1999). Data from 2001 census confirm that Britain has one of the highest rates in the world of inter ethnic relationship and consequently mixed race people.
The United Kingdom has one of the fastest growing mixed race populations in the world, fuelled by the continuing rise of inter ethnic relationships. Statistics from online BBC says by 1997 already half of Black man and a third of black women in relationship with white partner. And also inter racial relationship were flourishing with fifth of Asian men and 10 per cent of Asian women opting for a white partner. Mixed race population is currently fastest growing ethnic group in UK due to high number of inter ethnic relationships. According to Steve Schifferes, 2002 if the mixed race people suffer racism nobody asks them if they are mixed race.
As concluded by Sylvia Horton In U.K it is reflected in ethnocentrism, negative approach towards ethnic minorities and immigrants (David Farnham,1999 pg: ). This leads violence in society, conflicts in work place and racism in public.
There was a racially fuelled violence in the northern town and cities. There has been extensive racial violence in Burnley, Oldham and Bradford on may 2001.
According to BBC news online’s specially commissioned poll, racism in the work place is widespread in Britain. Almost on in four of the population 22% have come across racism in workplace asked by the poll. More over 40%of the black people saying they have witnessed racism in the employment, this is double the figure of whites. One measure of racism in employment is whether people work with people from other races. There appears to be widespread concern about having an other race person as a boss.
According to BBC news online survey, one in three mind working for someone of a different race. And one in four mind work in the same workplace as someone of a different race. And majority of these believe that the colour of person’s skin makes difference in the way they treated at work.
All ethnic minority groups have the higher rate of unemployment than whites.. All ethnic minorities have higher unemployment than whites. As concluded by David Pierce, 2001 nearly three fifth of the unemployed from ethnic minorities lived in London (British economical survey volume 30 no 2 spring 2001). According to David Farnham ethnic minorities tend to be concentrating in the lowest paid jobs and the least secure ones.
According to BBC online survey one quarter of blacks says they have observed racism in shops or provision of other services, while one in ten saying they have experienced racism in banking service. Majority of the people in Britain judge that immigration has damaged British society over the past 50 years. According to home office online report in 1995 and 1996 12222 racial incidents were recorded by the police. These include verbal abuse and threatening behaviour, assault and property damage. Such crimes not only misery for the victims and their families, but wider fear resentment with in the communities.
At the beginning of January 2003, the department of trade and industry (DTI) published the findings of survey, of people looking for new job, which showed that flexible work was more important than other ‘perks’ of the job or extra money(www.dti.co.uk, 8-11-2004)
Flexible working is a range of options designed to help employees balance work and home life. The options are
1. Reduced hours
2. Job sharing with another employee
3. Working from home
4. Compressed hours of work
According to www.eoc.org.uk one study found that flexible working practice are associated with above average financial performance, above average labour productivity and reduce labour turn over among private sector firms.
And many companies found that their productivity has improved through better retention rates and improved morale since implementing flexible working policies.
As stated in online www.eoc.org .uk. benefits for the employees in flexible working hours are
1. Extending business opening hours
2. Encouraging employees
3. Attracting wide range of candidates
4. Reducing absenteeism
5. Retaining valued employees
6. An increased employee motivation and productivity
Part time employment enables women with family responsibilities to enter paid employment and combine their dual roles. It allows many people those who have different responsibility in the society to be economically active.
Although some choose to be single parents majority find that either be breakdown of relationship, or death of partner. A single parent has to struggle with a tight budget to bring up their children. And also they receive bad press in society. Jill Curtis, (2001) states that UK is the divorce capital of Europe, and more children living with single parents. According to single parent action network 23 per cent of the families with children are single parent, which makes 1.3 million single parents in Britain (Jill Curtis, 2001). More over it says that nine out of ten single parents are mothers. People believe that single parent families are dysfunctional.
Most of the single parent families are economically down and there is much possibilities for children to go in wrong path. Many single parents experience financial difficulties that may prevent them from enjoying many activities like vacations or trips to the movies or dinner.
Due to increase of migrants and population working population is growing which makes good contribution to the national GDP. But the growth of the ethnic minorities threatening UK future.
Our multi cultural society becoming mutilate cultural society, waves upon waves of immigration mutilated our culture