Comments: Does bubble-bubble mean unemployment trouble?

Set against the 7.9m economically inactive members of the labor force, it’s hard to see the unemployment figures as anything other than meaningless. The figure now just measures movements in a distinct but probably not very representative sub sample of what is normally understood to be the unemployed. The main problem is therefore, as you say, that the government is therefore flying blind.

But a second more important problem maybe the hysterisis effects from the public sector hiring binge. How easily is a former “diversity out 5 a day reach worker” going to reintegrate into the private sector (or at least the productive part or the private sector)? This I suspect is going to be the next pool of workers joining the 7.9 mil!

Posted by giles at December 20, 2004 05:52 PM
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