Tuesday, 4 January 2011

Welcome to the hard times!"

Sometimes I do wonder, if the government makes it up as they go along, take unemployment for instance. They the government have claimed, and many times now since assuming the reigns of power that the private sector would be able to absorb the 330,000 jobs that will be chopped and scandalously in some cases by Labour Councils  from the public sector.

According to a major report, unemployment this year is set to soar to a 17 year high of 2.7 million, and whilst some say the economy is forecast to expand, growth may be insufficient to prevent the jobless total climbing, so what we may experience is a “jobless recovery”.

A recovery without jobs; well that will go down well with the unemployed who are now being forced at a jobcentre near you, to jump through hoops like performing seals in a travailing circus.

For those still in work, wage rises will run far below the level of inflation; around 2 per cent is forecast to be the norm, against price rises of around double that level for much of the year. Don’t forget today we have seen a massive rise in VAT, petrol, fuel and the general costs of travel, and then of course during the winter months and just before Christmas, gas and electricity providers were allowed to substantially up their prices in some cases by a monolithic 7 per cent. The rising cost of goods due to the VAT hike coupled with the New Year fuel duty increase could result in an 'inflationary time bomb', and so the Greater Manchester Chamber of Commerce has warned. Osborne the Tory chancellor has previously said that the 20 per cent rate is 'not a temporary arrangement" but a structural part of the tax system, leading economic experts to predict it will remain at least until the next general election, scheduled for 2015.

How bad are things’ going to get in the next few months is really hard to predict or even anticipate?

The Charted Institute for Personnel and Development (CIPD), which I must concede’ have never heard of before know, says its contacts with more than 1,000 HR managers in the public sector indicate that job losses in central and local government and their agencies will be higher than those predicted by the Office for Budget Responsibility (or rather should that be Irresponsibility), but then again the government with all 18 millionaires knows exactly what its doing.

The pace of private-sector job creation will also be slower than what the government will have us believe, claims the CIPD. It says that public-sector employment will fall by 120,000 this coming year, and that private-sector employment will also decline by 80,000.

One other interesting point made by the CIPD is that any new jobs created are far removed from the traditional ideal of permanent secure, well-paid positions. Many a new job created in what they call a recovery have been part-time and temporary. Around 1.6 million are officially classed as working part-time or temporary because there is not or they cannot find suitable permanent work.

Welcome to the hard times!" 

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