Knowledge Centre
13th August 2009
Millions of the 'hidden jobless' are the only thing keeping headline unemployment figures below the 2.5million benchmark, according to a human resources body.
The Chartered Institute of Personnel and Development (CIPD) is warning that the "genuine level of joblessness" stands in excess of 4.5million people.
Dr John Philpott, the organisation's chief economist, drew attention to the 2.13million economically inactive people of working age which are seen in the labour market figures released yesterday by the Office for National Statistics (ONS). This figure had risen by 127,000.
The official measure of UK unemployment shows that the jobless tally rose by 220,000 in the three months to June - taking the total to 2.44million.
And the situation is compounded by today's updated forecast from the Bank of England, which admitted the recession is deeper than it first thought, saying inflation could fall below 1% temporarily.
According to Dr Philpott, the numbers of hidden jobless are evidence of a labour market "in deepening distress".
"Reading the latest jobs market data alongside the Bank of England's updated forecast for the UK economy is rather like looking at a British summer weather chart - very few bright spots amid a welter of depressing gloom," he said.
"The situation would be less depressing if we could comfort ourselves with the prospect of a swift return to strong economic growth.
"But if the Bank of England is correct this is not on the cards."
IMAGE AP Photo/Alastair Grant
Hidden jobless 'signs of deepening economic distress'
The Chartered Institute of Personnel and Development (CIPD) is warning that the "genuine level of joblessness" stands in excess of 4.5million people.
Dr John Philpott, the organisation's chief economist, drew attention to the 2.13million economically inactive people of working age which are seen in the labour market figures released yesterday by the Office for National Statistics (ONS). This figure had risen by 127,000.
The official measure of UK unemployment shows that the jobless tally rose by 220,000 in the three months to June - taking the total to 2.44million.
And the situation is compounded by today's updated forecast from the Bank of England, which admitted the recession is deeper than it first thought, saying inflation could fall below 1% temporarily.
According to Dr Philpott, the numbers of hidden jobless are evidence of a labour market "in deepening distress".
"Reading the latest jobs market data alongside the Bank of England's updated forecast for the UK economy is rather like looking at a British summer weather chart - very few bright spots amid a welter of depressing gloom," he said.
"The situation would be less depressing if we could comfort ourselves with the prospect of a swift return to strong economic growth.
"But if the Bank of England is correct this is not on the cards."
IMAGE AP Photo/Alastair Grant
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