Today’s announcement by the Office for National Statistics has revealed a shock 0.5 per cent contraction in the UK’s economy in the final quarter of 2010.
This is very disappointing but understandable given the appalling weather the UK experienced in November and December. As a result of this, most sectors struggled to cope and many consumers just stopped spending even in the run-up to Christmas.
However, a positive sign was the REC’s latest Report on Jobs which did indicate that the jobs market in December remained in growth. Also, Jobs Outlook, the REC’s survey of employers remains optimistic about private sector jobs growth for the rest of this year.
Commenting on today’s figures, Kevin Green, the REC’s Chief Executive said:
“The economy is still predicted to grow by just over two per cent during 2011 but while this won’t drive huge job creation, it will be enough for the jobs market to remain positive. However this does clearly show that the Government must do more to stimulate growth and job creation.
“The one million young people not in work or education is a critical issue that must be addressed quickly to avoid a lost generation. To address this, an incentive to private sector employers to hire young people must now be considered urgently.”
This article was published by the REC