Economics Observatory | Insights on the UK and global economy

How are weight-loss drugs changing our food shopping?

American households with at least one user of GLP-1 weight-loss medications reduce their spending on groceries by 5.3% in the first six months of starting the treatment, with the biggest declines in snacks and sweets. But buying habits largely return to normal once consumers stop taking the drugs.

Productivity & growth

How do health inequalities shape regional economic performance in the UK?

The UK has some of the widest disparities in regional economic performance among advanced countries. Evidence suggests that health inequalities between different parts of the country are an important part of the explanation for the geographical variations in employment, inactivity and productivity.

Health, physical & mental

Why is health-related economic inactivity on the rise?

More people in the UK of working age are leaving the labour force because of poor health than in other similar countries. An effective policy response requires understanding the rise of work-limiting mental health issues among younger workers and musculoskeletal conditions among older workers.

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

Will AI leave us in charge of our own work?

Although artificial intelligence can raise workers’ productivity and leave them free from interference, it can still erode their autonomy. This has an uncomfortable implication for how policy-makers regulate AI at work, since a ‘keep a human in charge’ approach turns out to be the wrong test.

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.

Lessons from history

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.

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.

Lessons from history

What can we learn from a century of economic history?

Good economic history offers insights to policy-makers, showing them how crises have been navigated in the past, and the intended and unintended consequences of the actions of earlier governments.

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.

All Answers