c) changes in absolute poverty and relative poverty

• What are some causes of poverty?

  Unemployment, lack of skills, health problems
• How does GDP affect absolute poverty?

  Absolute poverty tends to fall as GDP increases
• What are the main causes of growth in relative poverty?

  Higher income growth for high salaries or changes in government spending
• What has been happening to relative poverty in the UK?

  Relative poverty has been growing
• What are the reasons for growing relative poverty in the UK?

  • Growing inequality in wage growth
  • Low wage increases in the public sector
  • De-industrialisation leading to lower-paid service jobs
  • Growth in underemployment and temporary jobs
  • Decline of trade unions affecting wage bargaining
  • Falling relative value of state benefits
  • Rising long-term and structural unemployment
• How has wage growth inequality affected relative poverty in the UK?

  Higher paid jobs see larger wage increases
• How much higher are the wages of the richest compared to the average worker?

  170 times the average worker
• What impact has de-industrialisation had on jobs in the UK?

  Increased number of lower-paid service sector jobs
• What types of employment have increased in the UK?

  Underemployment, zero-hour contracts, part-time jobs
• How has the decline of trade unions affected workers?

  Workers are unable to bargain for higher wages
• What has happened to state benefits in relative value?

  State benefits have fallen in relative value
• What type of unemployment has risen in the UK?

  Long term and structural unemployment