Unemployment rising – inevitably

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As the Guardian has noted:

UK unemployment has risen back over the 2.5 million mark, fanning fears that Britain is suffering a "jobless recovery".

The number of people out of work in Britain rose by 35,000 in the three months to October, pushing the unemployment total up to 2,502,000. This raised the UK's unemployment rate to 7.9%, from 7.8% in the previous quarter, the highest rate in six months.

City economists had expected a 15,000 drop in the number of people out of work, which would have lowered the unemployment rate to 7.7%.

The rise was mainly due to a drop in public sector employment, where 33,000 jobs were lost over the period.

Those economists are wrong. They assume that a retreating public sector will promote private sector growth. It doesn’t. It means private sector stagnation or worse.

And those who worry about a jobless recovery are also wrong.

A recovery without jobs is not a recovery.

And we’re not going to get new jobs. The government is guaranteeing that will be the case. And we’re just seeing the first signs of it.


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