... the effect on the economy. The major upward forces affecting inflation recently have been the rising transport costs, as well as an increase in the cost of oil and fuel. The downward effects came from a decrease in a number of commodity groups. An increase in unemployment is usually caused by a downturn in economic activity. Unemployment is an economic indicator that refers to the number of people who are able and willing, but are unable to work. People in this situation are said to be unemployed. The current rate of unemployment in the UK for the quarter November 2004 to January 2005 stood at 4.7%, with 1.41 million people unemployed. The trend over the past few years has shown a decrease in the rate of unemployment, and also an increase in the employment rate. There are three main types of unemployment, cyclical, frictional and structural. Cyclical unemployment occurs ...

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