by Michael Roberts
Like that of the US, the UK’s unemployment rate took a plunge down to
7.1%. Added to the news that the IMF has upgraded its forecast for UK
growth to 2.4% for this year, all the talk is of sustained growth for
the UK economy over the next few years. But a quick glance at the
unemployment data does suggest caution in that optimism. Sure, the
official unemployment rate is plunging, but it is still well above
pre-crisis levels (some 2% pts.)
And as I have discussed before in previous posts (http://thenextrecession.wordpress.com/2013/09/13/uk-underemployment-and-economic-recovery/),
much of this reduction has been at the expense of a fall in wages.
Employers have kept staff by holding down wage increases and switching
staff onto temporary contracts (zero hours) and part-time work. Average
weekly earnings are still way below inflation.
The UK labour participation rate (% working of those working age) has
fallen sharply since the beginning of the crisis in 2008 and so about 2%
pts of the drop in the official unemployment rate can be explained by
people just leaving the workforce.
- AFSCME Local 444 negotiations assesment 1997
- Preparing for Revolution: A discussion document
- The Internal lives of Revolutionary Organizations
- Socialist Alternative members: Questions and Answers
- Sanders: Our Alternative
- The Nature of the New European Left
- Catastrophic Climate Change: Caused by Capitalism
- University of California workers and Unions
- An Invitation to Our Readers
- Facts For Working People Weekly Phone Conferences ...