AS Paper 2, June 2025The UK Economy – Performance and Policies
AS Paper 2, June 2025, Q1(b)
With reference to the information above, explain one possible effect of the increase in the rate of unemployment on the UK government budget.
Short answerExplain3 marks
Context
Between January 2020 and December 2020, the rate of unemployment in the UK increased from 3.9% to 5.2%. This was as a result of the UK economy experiencing a recession.