JobJustice: Job losses and job insecurity to last until 2013

On Monday, a report from the Chartered Institute of Personnel and Development warned that the job market is going to experience a "slow, painful contraction". Today, this prediction proved to be accurate as the Bank of England lowered its forecast for UK growth and inflation.

Although opinions vary on when the UK economy will fully recover, the bank’s monetary policy committee did not predict this to happen before 2013. The bank said that "Implementation of a credible and effective policy response in the euro area would help to reduce uncertainty and so support UK growth, but its absence poses the single biggest risk to the domestic recovery".

Although the Government sees the main cause of the current financial climate to be the instability of the eurozone, the opposition says that the high level of unemployment is a consequence of the austerity measures. The Shadow Chancellor, Ed Balls, said, "The British economic recovery was choked off well before the instability in the last few months in the eurozone.

"The government is cutting too far and too fast and it's pushing borrowing and unemployment up at the same time."

The Bank of England said that the unstable climate will remain until the eurozone makes a full recovery. Until then, exports will remain low, which has a negative impact on the UK job market.

Moreover, the Office for National Statistics published new numbers on unemployment. These indicated that youth unemployment has risen to above one million, and that the total people out of employment in the country numbers a staggering 2.62 million.

Many young people are finding it difficult to find employment. Even if they succeed in doing so, they often remain anxious because of the low level of job security. The Government has imposed significant cuts to schemes that encourage students to enter the job market. Additionally, funding to companies employing young workers, youth clubs and charities have been poorly affected by the austerity measures.

Paul Brown, Director at the Prince's Trust, said, "I think it's a wake-up call to the country... We can't afford to wake up in three years time when the economy grows and find that there are a group of young people who have been left behind.

"Unemployment isn't just a financial problem. It can very badly affect the rest of people's lives."

JobJustice

Thursday 17 November 2011

Job losses and job insecurity to last until 2013

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