Headline unemployment falls but what is the real picture?
While the rate of unemployment in the three months to December fell by 3,000 to 2.46 million the actual rate of unemployment remained static at 7.8%. However, there are more worrying developments under the surface which indicate the real depth of the recession and the problems we will have in the short to medium term.
The number of people classed as "long-term unemployed" increase by 37,000 in the final quarter of 2009 to hit 663,000 which is the highest three monthly figure since September 1997. We also saw the number of people seeking jobseekers allowance climb by 23,500 between December 2009 and January 2010, to reach a level of 1.64 million.
On the surface the politicians will make great headway at the fact that headline unemployment has fallen slightly, but behind the scenes there is doom and gloom and more concern about the short to medium term. Indeed some economists are even talking of a "triple tumble recession" as opposed to the double dip recession which has been in the headlines of late. The truth is that the finances of the UK are still in serious trouble and with unemployment unlikely to fall significantly in the short to medium term there is little likelihood of an increase in tax income.
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