Respected Ernst & Young economic forecaster group, the Item Club, has advised that UK could well have already fallen back into recession.
Saying the country’s GDP has slipped back in the last quarter of 2011, and will continue to do so in the next quarter; it said the UK economy is unlikely to grow by more than a fraction of a percent in the coming year.
Announcing its findings, the Item Club’s Peter Spencer, chief exec for the group, also said it expected another 300,000 people to be added to the jobless total. This would take the figure to just shy of three million.
This is something backed up by The Bank of Scotland.
In their latest Report on Jobs, the number of available Scottish vacancies increased at the slowest rate over the last 14 months for permanent positions and 22 months for temporary placements.
This is largely because of the stifling of business spending, promoted largely because commercial finance in Scotland is increasingly hard to come by.
However, some well performing companies report that present vacancies are becoming harder to fill.
This is certainly the case for many Scottish restaurant chains, where there are theories that the expectations of university leavers are now too high. This could directly be affecting the number of UK applicants. As a result, many employers in the sector are seeking candidates from abroad.
The rights and wrongs of their action is subject to much debate, but that unemployment figures seem set to only get worse for the foreseeable future, action is needed. This action needs to come from business, from the government, but also from jobseekers themselves.