UK Unemployment Driven by Separation Rate, Impacting Job Dynamics.
The UK experiences higher unemployment during recessions due to more people losing their jobs. A new way of looking at unemployment patterns in the UK shows that job finding rates play a big role in shaping unemployment levels during normal times. Data from 1988 to 2008 reveals that UK transition rates are much lower than in the US, leading to significant changes in unemployment levels around economic ups and downs.