Unemployment Continues To Rise despite Drop in Those Seeking Job Seekers Allowance

The latest unemployment data released today, 21 April 2010, continues to see the recession bite hard.

Unemployment rose to 8% in February from 7.8% in January to 2.5 million people with those in employment falling by 89,000 over the three months. The percentage in employment fell to the lowest level since October 1996.

The stark failure of the UUK economy can be seen from the fact that the number of adults of working age who are economically inactive rose 0.3% to 21.5% or 8.2 million people over the quarter – the highest since 2004.

The young have been hardest hit by this recession with 930,000 unemployed in the 16 to 24 age group.

The government will say there are 33,000 less people claiming job seekers allowance but this masks the move from job seekers allowance to incapacity.

Britain’s Stagnating Economy – Growth Slows to 0.2%

The UK economy continued, in the first quarter of 2010, to stagnate along the bottom of what has been its biggest decline since the great depression of 1930s. Growth was half of what was expected and only a rebound in Business Services and Finance stopped it slipping into negative territory.

The danger of a double dip recession looms high on the horizon with the public sector cuts proposed by all the major UK parties. In addition the European economy, our major trading partner is threatened with a slump as the size of government deficits threatens any recovery and undermines confidence.

The sluggish growth is way below the optimistic outlook in the Government’s own forecasts. This means that revenues will be lower than expected and as consequence the cuts will be deeper than all the parties are proposing if they are to achieve their targets for reducing the public spending deficit.

A rationally planned alternative economy is required that meets peoples needs and puts to use the vast untapped resources of people and skills.