More economic pain before gain

On the same day that the Bank of England raised the increasing prospect that the UK economy will remain static, with the risk that we may flirt with recession (as defined by economists as two consecutive quarters of negative GDP growth), the West Midlands’ labour market received further bad news.

The latest data on the numbers claiming Job Seekers Allowance shows that the growth in unemployment looks set to continue.

The figures for July saw the number of claimants grow by 2,400, up from the revised June figure of 2,200. With the latest Purchasing Managers Index (PMI) pointing to further reductions in employment as firms seek to reduce costs in the face of falling demand, expect further bad news in the months to come.

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