Wednesday 3 July 2013

Where have the jobs come from ?

Thanks to Stephanie Flanders, Economics Editor at the BBC, I have a partial answer to my questions regarding the Chancellor's claims:

Where have the jobs come from ?

While there has been negligible growth in the economy, since 2010 there has a growth in employment. 

432,000 more people in employment in April 2012 than a year earlier, but productivity is lower, 10% lower than would be expected of this level of employment.  According to a new paper by Joao Paulo Pessoa and John Van Reenen at the Centre for Economic Performance at the London School of Economics the growth in employment is down to workers accepting lower pay.  With credit difficult to obtain from banks and businesses reluctant to invest in equipment, businesses have been investing in people; people are cheaper than equipment or credit . . .

Between 2003 and 2008 pay rose on average by 10% (on top of inflation), between 2008 and 2013 average pay fell by 8%.

The full article: www.bbc.co.uk/news/business-22874889

What this explanation does not provide is an indication of where those jobs have been created; which sectors of the economy, which regions of the UK. 

Perhaps if my MP does ask Mr Osborne on my behalf then we shall have an answer ?

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