Recession bites and its after effects are seen in all walks of life. Same is the case with unemployment, once it seeps in then the whole economy of the country is affected. The two seem to be very correlated as greater the unemployment nearer is the time for recession and vice versa. Here we aren’t talking about a few thousand but a few million who are unemployed and that too in a much developed economy for a country like United Kingdom.
Yes unemployment has sunk deep in UK. The office for National Statistics has said that the level of unemployment is rated as close to 8.4%, the highest ever in almost 16 years. From a mere 48, 000 to go to an alarming 2.67 million unemployed is really a reason to worry. The worst affected being women which made up to 2/3 rds and then were the young jobless youth in the age group of 16 to 24 years.
The jobseekers allowance which is given to unemployed youth showed a significant rise of claimant from 6, 900 to 1.04 million. There is also a rise in reliance on part time job seekers. The no of part time jobs have increased to 70000 in the past quarter which is the high.
That by itself shows the glooming scenario of this issue and we find UK unemployment which continues to edge up.
Hopes for growth revival
Though the situation seems grim, there is nothing to panic and as Graeme Leahch, chief economist at the Institute of Directors, said: “The labour market isn’t signalling recession but it’s hardly suggesting recovery either.”
With the level of inflation going up the UK economy will be shaky and zigzag all through year dipping in and out of growth but will slowly and modestly grow. The Prime Minister David Cameron describes this rise in unemployment as disappointing but with full hope for a better revival and has assured of faster growth in economy.
The hope for growth seems to be relevant due to the increase and rise in the job vacancies in the last three months which means there is hope for revival and the worst is eased out.