Gloomy Figures in the UK and Revised Figures in the USA

Currently there are an estimated 2.64 million unemployed people in the UK, with a total of 9.33 million domant people in the country. As unemployment climbs 128,000 to a rate of 8.3 per cent – the highest level since the 1980’s. Many seem surprised except if one had honestly looked at the austerity measures implemented in the UK, the jobs cut by government and military alone would have predicted this rise added to the business failures and the employment cutbacks an astute economist should have be able to project these figures pretty close to dead on.

Data released today put the unemployment rate at its highest since 1996.

Growth is stalling and there are chances of another recession in the first half of 2012, as inflation sits right around 5 per cent.

Cutbacks to the welfare system will also add to the problems of Britain’s unemployed.

Market analysts are stating that while today’s overall unemployment figures are “better than expected” it “doesn’t change the picture at all”.Prospects aren’t looking good for next year either because of low growth.

Today’s  ONS figures have shown, moderate gains in the private sector but they have not offset losses in the public sector, primarily in public administration and education.

There is still a demand for specialist roles in finance and IT and these sectors will remain liquid over the coming months.

While across the pond in the USA the economy expanded less than thought during the third quarter as consumer spending fell short of an earlier estimate, though signs point to stronger growth in the final months of the year. And this is left open to interpretation and to revision.

New claims for unemployment benefits unexpectedly fell last week, reaching the lowest level since April 2008 and providing another sign of improvement for the weak labor market. But are expected to come in higher this week, or hold steady until after the holiday season

GDP, the widest measure of all the goods and services produced in an economy, grew at an inflation-adjusted annual rate of 1.8% in the 3rd quarter period. While still the strongest performance of the year, the Commerce Department’s third estimate of GDP is lower than the previous reading of 2.0%.

The economy’s lower growth level was largely due to a downward revision of how much consumers spent. The latest estimate showed personal consumption expenditure, which accounts for about two-thirds of spending in the economy, rose by 1.7% in the third quarter. That compares to a previous estimate of a 2.3% increase.

All in all the US is chugging along slowly but surely on the way to a slow recovery. Whereas the UK and the EU show signs of entering a recession in the 1st quarter of 2012. It looks gloomy back across the Atlantic. Hopefully, America will be able to fence themselves off from the problems facing the EU.

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