Unemployment set to rise for at least another 12 months
As we await official unemployment figures from the UK government it appears that the rate of unemployment is set to rise from 7.1% to 7.3% with an increase of 63,000 in May alone. This is a 12 year high which dates back to February 1997 and will see a total of 2.27 million people unemployed in the UK. However, both the CBI and the TUC believe this figure is nowhere near the top with forecasts of between 3 million and 3.25 million still being bandied about.
One thing is sure, even though the UK economy is showing signs of improvement there is still significant unemployment distress coming to many areas of the UK in the short to medium term. As we have mentioned on numerous occasions, the unemployment figure always lags a recovery in the UK economy with businesses unwilling or unable to invest into their operations until they see definitive improvement in business levels. This prolonged period of rising unemployment will also place more and more pressure upon the social security budget and reduce the government's income tax take into the future.
The early signs of confidence and euphoria which will greet the eventual improvement in the UK economy may well be short lived as the reality of continued unemployment hits more and more people.
Share this..
Related stories
Online retailers predict £400 million Mad Monday
Today is officially the first day of Christmas for UK retailers with online retailers especially confident that this Christmas will mark a turning point in the online arena. Online retailers are expecting a £400 million surge today as consumers look to bag the best bargains ahead of the festive period with seemingly more offers and promotions available online than ever before. While there is n...
Read MoreChristmas price war on the high street
Despite the fact that last Monday was seen by many as potentially the largest spending spree of the year, it is believed that an additional £420 million will be spent on Monday. However, analysts believe that UK consumers are in line for a massive £1 billion in savings as the major retailers up and down the country fight it out for the attention of the UK consumer. When you compare promotions...
Read MoreBank of England had £150 billion emergency fund in place
It has been revealed this weekend at the Bank of England had an emergency fund in place which totalled £150 billion. Just over £60 billion for this particular fund was used to shore up Lloyds bank and Royal Bank of Scotland at the height of the financial crisis last year but news that the bank had a further £90 billion to hand shows how difficult the situation had become. Slowly but surely w...
Read MoreGMAC-RFC hit by massive FSA fine
UK home loan provider GMAC-RFC has been hit with a massive FSA (Financial Services Authority) fine of £2.8 million and been ordered to repay £7.7 million in unfair and excessive charges to some 46,000 customers. This is by far and away the largest mortgage related fine issued by the FSA and the order to repay nearly £8 million has shocked many in the sector.
After a detailed inve...
What to do if…I have overspent this Christmas
30/12/2015 Did you know that the average family spends over £800 at Christmas time? Now that the presents have been opened and the mince pies have been eaten, you may be too scared to take a look at your bank balance. Don’t worry too much, if you feel like you have overspent this Christmas, we are here to help. It’s easily done, but there are some steps you can take to make getting thro...
Read More