In the News... Economic Indicators

The latest news from BBC...

UK manufacturing sees sharp fall

Manufacturing has been suffering along with the rest of the UK economy
The UK's manufacturing sector shrank in September at the fastest rate for 17 years.

UK unemployment total rises again

More workers are likely to lose their jobs this year
The number of people out of work in the UK rose by another 81,000 between May and July, to 1.72 million.

As well as these two indicators of economic recession (though we are not technically in one yet) there have been banks and building societies either taken over by rival firms and investors or nationalised (taken over by their respective Governments and bought out by public money).

Remember the Phillips Curve? Well inflation and unemployment are both rising at present which is at odds with the theory. Mind you over the last 10 years Gordon Brown's Chancellorship of the Treasury resulted in low inflation and low unemployment, which was achieved by our Government borrowing a lot of money from other sources. It looks like that policy is now coming home to roost.

It is common sense to expect the Phillips Curve Theory to take effect again and as unemployment rises over the next couple of years inflation will come down. It has to.

Again, the economic future is bleak and the lack of jobs is worrying for young people either graduating or going to university.

It would be wise just now to think about differentiating yourself from other students by building your CVs into something attractive and different. Voluntary work or school based activities would be wise.