Web links for 25th November 2011
The CBI’s latest monthly Industrial Trends Survey reports that 11% of manufacturers saw their order books above normal but 42% said they were below. The – 31% balance is the worst since January 2010. Export orders are particularly depressed.
Are unemployment benefits a disincentive to work? The USA has some useful evidence; this post by Mike Konczal shows (scroll down to point 5) that people who are eligible for UB when they lose their jobs spend much the same amount of time unemployed as people who quit their jobs, who aren’t. Yes, there is some effect, with an important study suggesting benefits have raised unemployment in the recession by 0.4 – 0.8 points, but that’s a pretty good price to pay. And even that may be an over-statement – another study estimates the effect at 0.2 – 0.6 points. (The other points in this post are also worth reading.