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UK Unemployment Numbers Fall From 8.2% to 8%

by | 03/11/2023

   Estimated reading time: 2 minutes

The shares in some of the major banks such as RBS and Lloyds have been rising on the back of the announcements made by the Bank of England that they will pump more money into the economy to make it easier for the banks to lend to individuals and businesses. The Bank of England will be providing cheap credit to the banks in turn for them to pass it on to other borrowers. With the growing uncertainty on Greeceís position in the Eurozone and the instability of economy in Asian economies like India and China, this stimulus is a big relief. It also signals that Bank of England is proactive and will do what it can to shield the local economy from the shocks of Eurozone and Asian markets. Most businesses will welcome the news as it now means that they will have access to more credit. This will hopefully help the economy to gain some momentum and start some of the stagnation that has come to prevail.

So what does this mean to the employment sector? Several employers have been slow to take on more staff and that meant that there was a steady month on month increase of unemployment and also more people than ever were registered at the Jobcentres. The situation with the youth unemployment has been worse. Increased liquidity means more businesses will endeavour to start implementing projects that have been put on hold and that should result in more jobs, more affordability and overall the liquidity in the economy should increase.

Kesh Thukaram, Director of Best Insurance welcomed the Governmentís decision and said that it is important that we should not get carried away. The implementation is key and hence until the enhanced liquidity comes in, and the economy kick starts again, this might not be result in any significant improvements in the economy.

Stuart Boseley, Director of Best Insurance commented saying that this is good news for unemployment insurance. Increasing claims means that insurers at some point would be forced to reconsider their pricing. If the employment market improves and there will be relatively less claims and hence more stability in pricing for unemployment insurance. He also added that accident and sickness insurance though valued by most people, did not get the required momentum and with improved affordability, more people can look at accident and sickness insurance. This insurance is also commonly referred to as long term income protection insurance.

Best Insurance has a wide range of long term income protection insurance and trained advisors who assist customers in making sure that they choose the right policy.