Wednesday, 14 September 2011

The Fruits of Osbourne

After weeks of saying Manufacturing was slowing, services were slowing and constructions orders were falling, today we saw the fruits of George Osbourne's Labour, Unemployment rose by 80,000.

These job loses have been predicted, there was never the slightest prospect of a expansionary fiscal contraction in the depths of a once in a hundred years financial crisis.

It is the Young and women are paying the highest price, with the Youth unemployment rate of 20.8 per cent, the highest since 1992. The 18-24 employment rate (57.3 per cent) is the lowest since 1992

Austerity and the global slowdown are now crimping private sector job creation; in the last quarter, net job creation there slipped to 41,000. But public sector cuts are now gaining momentum, with 111,000 jobs lost in the last quarter and probably more to come

The Office for Budget Responsibility said unemployment would peak at 8.2 per cent, was over-optimistic; their other unemployment forecast, that the claimant count would peak at 1.54 million, has already been overtaken.

The cycle continues downward, more unemployed, low growth, so what does George Osbourne do know?

He says more of the same, with that there is no chance of an upturn any time soon.

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