Unemployment Rates

On April 2, 2012, in Uncategorized, by Kesh Thukaram

The latest figures released on the Unemployment rates did not shock anyone. The unemployment rate for the Euro zone for February 2012 is 10.8%. This is higher than what was recorded in January 2012 which was 10.7%. This is the highest since the launch of the single currency in 1999. There is no sign of the economy improving in the short term and the unemployment rate for those in the age groups 15 and 24 was 31.9%.
As one would expect there is a wide divergence between the rates of unemployment across the major economies of the UK. Leading the unemployment rates is Spain with an overall rate of unemployment of 23.6%. Portugal follows with an unemployment rate of 15%. France is third at 10% followed by Italy at 9.3% and Germany with its low of 5.7%. The Unemployment rate in the UK in February 2012 was 8.4%. This will be a relief for some of the analysts and spin doctors in the Government that the UK employment rate is best next to Germany and the independence of UK economic policy and the balanced austerity measures has not only kept the Unemployment rates to lower levels but also the economy is in a much more stable platform than the Euro-zone. However the underlying assumption that the private sector will take the slack and create newer opportunities thereby the effect of the mass public sector redundancies will not impact the economy adversely is still a un-testes theory.
It amazes me as to how the Government gets away time and time again with their ill-founded theory that private sector can fill the gap of employment. There is no improvement in the economy. The fear of a double dip recession is getting real by the day and all indicators are that UK is already in the double dip recession. The budget figures for 2012 and 2013 are based on Unemployment numbers going up. Hence, it is inevitable that though UK has fared better than most European economies in the Euro-zone, it is likely that the situation may deteriorate. A lot depends on how deep the double dip in the recession will be.
It looks like finally people are waking up to the fact that their income from employment has to be protected and we are increasingly seeing people with no major commitments looking at income protection insurances. While there is a wide range of income and payment protection insurance available, customers must ensure that the policy they buy covers off all their main requirements from an unemployment or accident and sickness perspective.

 

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