Qualified advisers answering your
Financial Questions
call 0800 092 1245

Reading between the lines of the unemployment figures

While the headlines today suggest quite rightly that unemployment in the UK has fallen, the real picture regarding the UK economy is evident below the surface. The number of people in so-called "long-term unemployment" has risen to the highest level for 13 years and there are concerns this could move higher in the short to medium term. Indeed many believe that unemployment, currently 2.46 million, could actually increase to over 3 million by the end of 2012. So what does this mean for the UK economy?

While there may be some kind of short-term "feel-good factor" with regards to unemployment there is no doubt that once public sector budget cuts kick in there will be a large increase in unemployment numbers. As the UK economy struggles to push ahead over the next two years we may well see private sector companies looking to reduce their costs and reduce their headcount. This will then have a knock on effect to disposable income, mortgage arrears, the property market and consumer sentiment in the UK.

In simple terms, UK unemployment numbers hold the key to the short to medium-term direction of the UK economy and at this moment in time they are not looking too promising.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details