Rising UK Unemployment
Unemployment levels are becoming an “Elephant in the room” subject as economists forever talk of Job losses as being yesterday’s number.
The problem with glossing over the employment numbers is that job creation over the last half a century has been dependent (after a recession) on robust lending.
The banks are not in a position to dole out the largesse this time around and we risk an endemic pool of unemployed for the foreseeable future. With some 800K school and university leavers over the next few months, 3 million looks to be the starting point for the second half of the year rather than the end point as was hoped only a few months ago.
We now have the highest number of people officially out of work for 12 years and this does not include the huge numbers now on incapacity or “job creation schemes” or other redefinitions of recent times or the vastly increased university pool.
With more and more people now worried for their futures, the savings rate (already at a 15 year high in the States) is likely to put further pressure on the UK’s service sector economy. The UK’s mantra of ‘spend today for tomorrow may never come’ seems to be finally losing its grip.
Also see today’s market update, Spread Trading.
Doing our bit, we do currently have one role we are looking to fill at Clean Financial, see Spread Betting Jobs.
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Good Luck!
DB
The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.
Article provided / approved by Capital Spreads which is a trading name of London Capital Group Ltd which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 182110.
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