The London Olympics has had a few hurdles to overcome in recent weeks. First there were concerns about the huge amount of money spent on the event over the past seven years. Then there was a survey which indicated that Olympic excitement is pretty lacking. And, of course, there was a teeny bit of drama surrounding Olympic security as G4S made just the slightest absolute mess of things.
All in all, it makes a pleasant change to talk about the Olympics positively.
The demands of the London Olympics have led to the creation of some much needed jobs around the U.K. Although the majority of the jobs created by the Olympics are temporary,
this has coincided nicely with U.K. unemployment falling to a nine month low. 181, 000 more people are now working, and the majority of them are in full time employment.
The Office for National Statistics stated that through April unemployment based on International Labour Organization methods fell by 0.1 per cent to 8.1 per cent of the workforce.
Although the 6100 jobless-benefit claim rise in June was higher than the 5000 expected, the May 21st benefit rule change made a significant contribution.
29.4 million Britons are now in work, the largest amount since the Autumn of 2008. With the European debt crisis and U.K. recession continuing this is a positive sign of labour market resilience.
An economist at IHS Global Insight, Howard Archer, has stated that ‘Unemployment has been limited in recent months by an increase in people working part time, more people becoming self- employed and restrained earnings growth The big question is can the labour market remain resilient given the economy’s ongoing weakness.’
David Cameron for one will be hoping that this resilience holds when his coalition government attempt to reduce the nation’s budget deficit by cutting 100,000 + state jobs.
Some have suggested that the resilience indicated that firms are currently storing workers so they have the option of cutting jobs if the improvements in the economy fail to materialise. That lost jobs are being substituted by lower paid new ones is another explanation being provided by economists.
Clearly a recession is a marathon, not a sprint, but this news brings a much needed bit of positivity to the track.
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