THE NEW PATTERN OF REGIONAL UNEMPLOYMENT - CAUSES AND POLICY SIGNIFICANCE

In common with most OECD countries, unemployment in Britain has differed significantly between regions, but the persistence of relative regional unemployment rates in Britain has been, until recently, particularly striking. However, during the 1990-93 recession, the relative regional unemployment pattern changed significantly for the first time in 70 yr. Our primary purpose here is to understand these recent changes and to examine what might be learned about the contribution of economic policies to the amelioration of both regional and unemployment rate differentials and the amplitude of regional unemployment cycles. Finally, we ask whether there are many policy lessons to be drawn from the recent cycles in regional unemployment patterns which might provide insight into the amplitude of macro-economic cycles. -Author