Mini-case+7.1

** Mini-case 7.1: Macroeconomic stability and its relevance to students at university**

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**1. Write a summary of this mini-case** (100-200 words)
Students decided to go to university in 2009 as the economy had began to take a turn for the worst. Students were able to make the decision to improve their education and postpone going into work because of lack of employment opportunities. Even though there is opportunity cost to go to university there is also the benefit of gaining a better paid job as a graduate. Potentially when the economy has improved. Despite whether you go to university or develop trade skills, the case study reflects on how important it is to develop your own personal skills.

[, TUesday 22/3/2011, 16:00-17:30]

Despite the economic turndown, there was an increase in university applications because with jobs being hard to come by in 2009, it was more useful for students to stay in education in order to invest in their own skills and invest in their future rather than to struggle during that current climate. Also university fees during the yea2009 were cheaper so it was a worthwhile investment as degrees make job candidates more appealing and therefore more employable! Although its is important for students to invest in their education to get higher skilled jobs, it is also important to keep their skills up to date so in a changing economy they will always be able to find wrk. In margret thatchers era, lots of jobs were lost in the mining industry and although jobs were created in the ict industry it took a long time for the workers to qualifynd gain skills for ict as their key skills were not up to date

[2 man and 1 virgin, Monday 21/3/2011, 15:00-16:30]

In todays economy it is wise to invest in ones persnal skills aswell as investing money, as once the economy takes a turn for the worse, personal skills can be used to help someone retain a job during hard times

To summarise, Mini Case 7.1 to macroeconomic enviroment is important to university graduates as a stable economy will help students become employed, the skills they learn at university become dated within a decade. The cost of university is high, but still it is still important for students to invest in their own future, so that when they graduate they will be in a position to become employed even though they are reliant on the macro enviroment being stable.

[Team Tablet, Monday 21/3/2011, 13:00-14:30]

Up until 2008, the British economy had grown at a relatively stable rate until the financial crisis hit and the economy slumped therefore job prospects of new entrants to the labour market were dimmed. Employers decided to put a stop to all recruitment plans because there was an air of uncertainty, therefore students decided to stay in education for longer. The reasoning behind this decision was for the students to gain a larger skills base therefore become more employable. Students must fund their education in terms of tuition fees and living costs, but it’s worth it as they will gain higher earnings in the future. If the economy is stable it’s worth the risk because there will always be new jobs available. Even in a recession its always makes sense to invest in more skills.

[HAPPY MONDAYS :), Monday 21/3/2011, 10:30-12:00]



**2. Upload below your group response to the discussion question** (120-180 words) **:**
Why, despite the economic downturn, was there a surge in applications to UK universities in 2009?

More people have applied to university during the recession as it will have been difficult to get a good job at the time meaning the surge was due to people wanting to better there skills and become employable after the recession.

[Team Tablet, Monday 21/3/2011, 13:00-14:30]

Due to the economic downturn there were less new jobs available for young adults who had just left education. The need to gain a higher skills base was paramount as it would make the candidate more employable for a position which was now more highly contested. Another reason for there being more applications is not only to gain more skills but university being the only other option if a job is not available. If a person does a three year course, chances are the economic climate would have grown and there will be more jobs on offer after graduation. Also there are opportunities for students to get student loans at a interest fee rate. Aswell as the government offering grants and bursarys.

[HAPPY MONDAYS :), Monday 21/3/2011, 10:30-12:00]