Abstract
Considering the debate related to the potential effects of Brexit on the UK economy, the aim of this paper is to assess the impact of Brexit on the monthly unemployment rate since the vote for the UK leave from the European Union. This is one of the most important indicators of sustainable development for the country. The novelty of this research is given by the use of microdata to reflect the political instability brought by Brexit, with Google Trends being the tool for collecting the data. Moreover, the data for the four countries that compose the UK are considered (England, Northern Ireland, Scotland, Wales) in a panel data and multilevel framework. The results are consistent with the analysis of important macroeconomic indicators and indicate that Brexit concerns decreased the unemployment rate in the period June 2016–March 2019, with few arguments being provided for this. The state policies should encourage the investment in order to support the future economic growth and sustainable development of the UK.
Highlights
The concept of sustainability supposes three dimensions: economic development, social development and environmental protection
The main social dimension of sustainable economic growth is the decrease in unemployment, which is closely linked to investments and the institutional environment, including political stability [1,2,3]
The results indicated that the political instability in the UK generated by Brexit determined a lower unemployment rate, with some explanations being provided for this finding
Summary
The concept of sustainability supposes three dimensions: economic development, social development and environmental protection. The main social dimension of sustainable economic growth is the decrease in unemployment, which is closely linked to investments and the institutional environment, including political stability [1,2,3]. In this context, the connection between unemployment and political stability, in the sense that a certain political environment ensures a reasonable unemployment in a country, could contribute to the creation of a sustainable economic, social and political framework. The studies argue that unemployment is the threat to the social, economic and political stability of the country as well [1,2]
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