|UK unemployment rising amidst growing inflation of up to 4 percent and counting
Wednesday, 15 December 2010
British unemployment rose by 35,000 in the three months to October - to cross the 2.5 million mark indicating that the economic policy being promoted by the new conservative government could be damaging to the economy in the long term. It also comes at a time when inflation is running at 4 percent.
The figures released on Wednesday by the Office for National Statistics (ONS) gives the country an unemployment rate of 7.9 percent, the highest since the start of the year.
As expected, the young are heavily hit. They are joined by those in the public sector which is just starting to see excessive and deep cuts that will continue in the coming years.
The current data show that public sector employment fell by 33,000, including 18,000 in local government and 8,000 in the civil service.
“We face a very difficult path to get the economy back on the straight and narrow, deal with the deficit, get business moving again and create long-term sustainable growth," said employment Minister Chris Grayling to Sky News.
Union leader Brian Strutton of the GMB union said that measures taken by the coalition Government were unnecessarily causing the unemployment level to rise.
"The economy doesn't need to correct itself as severely as it is being made to do. The consequences will be not only rising job losses," he warned.
The rising unemployment figure has come at a time when the cost of living the UK is also growing exponentially. Inflation rate rose 4 percent. On Monday the Bank of England reported that more British households than ever are feeling the pinch due to increasing unemployment, slow growth in earnings and limited credit availability.
According to an annual survey, it was found that two fifths of homes struggle with paying monthly bills compared with a third last year. 90 percent of respondents said that they expected to be affected by the Government's spending cuts, due to take effect next year.
Most expected to be affected through higher taxation on earnings and reduced spending on services.
The majority of those surveyed admitted to being more worried about debt now that they were two years ago when the recession first took hold.
When asked about savings, some households admitted to saving less in an attempt to maintain spending levels while others saved more in anticipation of job cuts, weak house price growth and "a general level of uncertainty".
On the whole the out look of the UK economy does not look good. Student riots and a result of exponential increased in tuition fee, rising cost of basic living, increasing unemployment, rising taxes and VAT …the list continues where is the UK heading remain unclear. We’ll wait and see.
By Scancomark.se Team