TUC predicts continued job losses through 2010
The Trade Unions Congress (TUCs) has predicted that unemployment will continue to rise in the UK until autumn 2010, with the labour market not fully recovering until 2015.
It made the prediction by comparing the current economic climate with official figures from the financial downturn during Britain’s last recession in the 1990s.
According to the union body, during the early 90′s recession, GDP began to grow in 1991.
However, the employment market did not begin to recover until 18 months later.
“There has always been a delay between the economy starting to grow and unemployment beginning to fall, as cautious employers make use of capacity among existing staff before recruiting new employees and want to be sure of recovery before expanding their businesses,” the TUC said.
Unemployment rose for 11 quarters in a row during the last recession, the TUC pointed out, and it took seven years before the number of people out of work returned to pre-recession levels.
Brendan Barber, TUC General Secretary, said: “Some now say that we have a recovery.
“But even if this is not a false dawn, as others fear, it will be years before the thousands of people who have lost their jobs or who will lose them in months to come will see anything to celebrate.”
Barber urged the government to make tackling unemployment its “number one priority”.
The TUC’s announcement follows figures released yesterday by the Office for National Statistics showing that unemployment is now at the highest rate since July 1997.
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