Wednesday, November 17, 2010

Is the Private Sector Doing What Osborne Predicted?

Today's unemployment figures seem, on the face of it, to be very encouraging. The main figures are down by 9,000 and the number of unemployment benefit claimants is also down by 3,700. It had been thought there would be a rise of 5,000. Some pundits will say this is the calm before the storm, and they may well be right, but there is another possibility. Just maybe, just maybe, George Osborne was right and the private sector is taking up the slack. It is far too early to be sure, but the signs are positive.


Victor, NW Kent said...

The nay-sayers are once again confounded. They are willing the Caolition to fail. They are not strong on accurate prophecy.

neil craig said...

If so & since that means there will be more revenue than expected it would certainly be justified to do more to help the private scetor grow. I think, particularly with Ireland now under EU pressure to raise Corporation Tax, it would be wise for Osborne to publicly promise that any growth in all business tax takings will be returned in lower CT rates. This would give investors long term confidence & cost zero since it is not actually spending money that exists, or will exist if business doesn't grow.

Phil said...

But what kind of jobs are being created? Well paid full time jobs which the economic recovery needs or highly casualised, low paid part-time work?

Anonymous said...

Phil - how about well-paid part-time work?

I'm looking to recruit someone to run my business affairs for me - the going rate for someone competent is £8-9 per hour. But I only need someone for one day a week.

Having spoken to the local jobcentre, they made it clear that no-one would come off benefits for such a job, because they'd lose all of the money they earned. So I'll probably have to hire the spouse of a high earner whose kids have grown up.

I'd rather do my bit to get someone off benefits (especially as I intend to grow the business - and therefore the job - over the next five years) but until IDS's reforms kick in, I haven't got a hope.

Libertarian said...

There are 453,000 job vacancies at the moment.

The private sector will take up the slack, the jobs market ( my area of professional expertise) is recovering at a rapid rate. This has ZERO, NOTHING to do with anything Osbourne or the government has so far done as at the moment everything they have signed up to will NOT help make it easier to employ more people


There are 100,000's of very well paid full time jobs

There are 100'000's of well paid part time jobs

There are 100'000's of minimum wage full and part time jobs for those people who can't be bothered to a)learn any skills b)put in any effort or c) want to do these kind of jobs to supplement their incomes whilst studying etc

Tapestry said...

Nothing like the smack of firm government to get entrepreneurial juices flowing once more.

BP for example are coming back to the North Sea spending GBP 6 billion in the next few years. They weren't going to invest a Scottish grote while Gordon Brown was in office, what with his unpredictable ''windfall'' tax grabs.

Alex said...

The figures massively understate the truth. Total employment was up by 167,000, which means that 150,000 people got into work from outside the ranks of the registered unemployed, either graduating students or people who haven't needed to rely on the state for support while "resting" between jobs.

Michael Fowke said...

How many of these new jobs were full-time and permanent though?

North Briton 45 said...

Sorry but there is no evidence of the private sector picking up the slack at all. The increase in employment, while welcome, is practically all due to part-time work and self-employment.

The full time market is sullenly stagnant.

And, in fact, there was a job in the numbers of jobs available.

Not exactly picking up the slack then.

Twig said...

When benefit claimants are required to attend for community "workfare" it will flush out the people who work in the black economy and those who sign on with no intention of looking for work (this especially happens when jobs are scarce, because the bludgers know that there's no risk of an offer from the Job Centre).

Norton Folgate said...

1 day a week isn't a part time job it's a hobby, even at £8-9 an hour your best bet is an experienced retiree looking to supplement their pension.

Using TESCO as an example, they are currently laying off temps en masse and asking for permanant staff to take unpaid leave.

When they are recruiting the jobs are part time and on rolling temporary contracts so they offer no job security, people are laid off capriciously depending on the shop budget even if the workload still requires them.

Unless these 100'000's of part time jobs are paying £15-20 an hour then they aren't well paid, 20 hours a week on £6.50 an hour before tax is not well paid.

Libertarian said...

@ North Briton 45

Read my earlier post are totally wrong

@Michael Fowke

All of them, the part time working figures are even better

bewick said...

@ norton folgate
Not quite right Norton. Retirees would only be interested if their pension and other income was nowhere near £23000 a year. Otherwise they are taxed at an effective rate of 30%.
Granted that there could be many with the experience and expertise to satisfy smileyman's needs but would they really want to do that?

Libertarian said...

@Norton Folgate

Beam down to this planet !

Unless you earn £40 k it isn't well paid.....please do me a favour

Never mentioned £6.50 per hour I guess if you can't read you personally will be struggling to get a job.

I said there are many well paid part time jobs I consider well paid to be anything over £10 per hour.

You don't seem to grasp the concept of part time work, its done by people who either have time constraints that stop them working full time, people who do some work to supplement a family income or lots of people who have multiple part time jobs ( ie they work a full week for different employers)

If you want a full time job, get a full time job there are lots and lots about.

If you want one let me know and I'll show you what and where they are

ps I also mentioned there are many low paid part time and full time jobs these would be the £5.90 - £9.50 per hour jobs, your point being what? and if you bothered to actually read what I wrote you will have seen that your post was just fatuous


@ smileyman

The local job centre have it wrong as you can work 16 hours a week and still get benefits.Jobless up here in Scotland is going up .The jobs are all part time and in the south east
Andrew Edinburgh

kbos2hm said...

the jobless will contiu to go up as we move more towards agencys so loads of people will be in work but they will not be doing full time jobs you never get proper figures form goverment