Unemployment levels fall to 7.9%

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Some good news emerging from the UK economy this week, unemployment levels falling to 7.9%, equivalent to 2.53m people registered as unemployed.

A welcome fall, but unlikely to be repeated very often in the near future I suspect.

Let’s give a balanced view, the percentage of people in work rose to 71.3%, the best since April 2009.

Before we get too complacent, if ever we should in times of financial uncertainty, the Bank of England’s Deputy Governor, Paul Tucker says that “the worst may be still ahead” for the banking system.

When Tucker gives such austere and clear warnings of yet more pain to come, we can expect further tax increases and inflationary forces to continue.

What does that mean for the majority of people who want to know if their jobs are safe (they aren’t….no more jobs for life), will their pensions be able to sustain them in old age (no, unless you have a gold plated civil service pension or final salary scheme in the private sector)?

It means that companies face yet more uncertainty in their investment in people and capital projects, all of which creates GDP and wealth for the country.

So, even more years of low or zero growth, and little hope for respite just yet.

Strong leadership required, but from where?