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Why Was There So Much Unemployment In Interwar Britain? Unemployment was not new to Britain, it just happened to a greater extent during the interwar period than usual. In 1920, the Unemployment Insurance Act was passed, enabling the number of unemployed people to be counted. Between 1921 and 1939, unemployment averaged 14% of the insured workforce, with peaks at 16.9% in 1921, and 22.1% in 1932, and only in 1927, did it fall below 10%. In December 1921, over 2 million insured workers were unemployed, and in September 1932, unemployment reached an estimated 3,750,000. What made unemployment worse was that it lasted a long time, whereas previously, it had been short term. Long term unemployment took the place of short term unemployment, in 1932, 16.4% of the total, over 400,000 people were unemployed for 12 months or more. There were some plus points of the interwar period, as luxury items, such...

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