Economics Observatory | Insights on the UK and global economy

The Wealth of Nations at 250: how has economics changed since Adam Smith?

The world has changed drastically over the two and a half centuries since the publication of what is widely seen as the founding text of economics. But its author’s core ideas – about specialisation, exchange and accumulation – continue to provide valuable insights for researchers and policy-makers.

Jobs, work, pay & benefits

Beyond wages: what makes a good job?

People’s wellbeing at work is influenced by various features of their jobs, including autonomy, intensity and prospects. Researchers use surveys to track these dimensions of working life and measure their contribution to social progress. Many of them cannot be improved through economic growth alone.

Jobs, work, pay & benefits

How can the shift to net zero create good jobs?

The transition to net-zero emissions of carbon dioxide to stop climate change could be difficult for people working in high carbon-emitting sectors. But net zero is set to boost employment numbers across the energy sector – and the new jobs are likely to be high-skills ones that pay well.

DATA HUB

In the past 150 years working hours halved

In the mid-1800s, the average person in Britain worked for 60-70 hours a week. The weekend was Saturday lunchtime only. A big change came in 1847, when Parliament capped working hours and regulated working conditions.

Today, the average working week is around 36 hours. The workforce has also grown as a share of the population: in 1800, around 20% of workers were women; that figure is now 47%.

Jobs, work, pay & benefits

Why are good jobs concentrated in certain places?

Good jobs exist everywhere in the UK – but the highest-paying roles remain heavily concentrated in London and the South East, and a small number of cities. Structural change has reinforced these patterns, raising difficult questions about how policy can help to spread opportunity more widely.

MAGAZINE

Read the latest edition of our magazine here

In 2023, ECO magazine marked the 300th anniversary of the birth of Adam Smith. Now, it is 250 years since the publication of his pioneering book, The Wealth of Nations.

Productivity & growth

Is the UK on track for growth in every postcode?

Every UK region grew in 2024, but nearly a third of local authorities experienced a fall in total output that year. Analysing the latest official data helps to explain this striking variation – and offers an initial framework for assessing the prime minister’s promise of ‘growth in every postcode’.

Pensions, savings & investment

Can the UK afford the triple lock on state pensions?

The value of state pensions in the UK is protected by the so-called triple lock. This policy has led to substantial increases in payments to pensioners, raising questions about its affordability over the longer term.

Data stories

Manchester City and the 114 verdict: what are the implications?

The verdict on Manchester City’s financial rule-breaking will have wide-ranging effects. In terms of this season’s Premier League, whatever punishment the club receives will benefit other teams: a deduction of 20 points or more would give Arsenal an 83% chance of winning the title and Liverpool 12%.

Productivity & growth

UK productivity: why is the frontier economy invisible to policy-makers?

The most productive, fastest-growing and most heavily invested part of the UK economy is invisible in the data that policy-makers use for decisions. A new classification of frontier firms reveals the scale of the gap – and the consequences for interest rates, industrial strategy and growth policy.

Lessons from history

How has the UK’s financial system changed over the past 100 years?

The UK’s financial system has been forged by economic shocks, political priorities and market changes. Over the past century, banks have come to play a bigger role, not least for firms looking to raise capital. Recent reforms seek to revive corporate equity and bond markets to support growth.

Lessons from history

How has the UK business cycle changed over the past 100 years?

Despite lessons from macroeconomics and economic history, recessions still strike with similar frequency and force to their predecessors. Business cycles remain unpredictable in their timing and severity – with spells of relative economic tranquillity or turbulence as much down to luck as policy.

Lessons from history

How has the UK’s trade changed over the past 100 years?

Debates about globalisation and trade policy have deep historical roots. Patterns in the goods and services bought and sold by the UK have shifted over the past century, alongside the framework that governs world trade – but international commerce remains a defining feature of the nation’s economy.

Lessons from history

How have UK businesses changed over the past 100 years?

The end of the British Empire, large-scale technological progress, an increasingly globalised world economy and big shifts in government policy have all affected UK businesses over the past century. But despite such changes, a number of British companies that were prominent in 1926 remain so today.

Lessons from history

How have UK industrial relations changed over the past 100 years?

As the centenary of the General Strike, 1926 is an apt starting point for considering how the governance of UK labour markets has evolved. But 1979 was the moment when the industrial relations system of high trade union and collective bargaining coverage reached maturity before falling into decline.

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