This doesn’t feel like a recovery
These are shocking statistics. Sometimes it’s hard to remember we are nearly two years into the ‘recovery’ from recession. For many people the current situation feels an awful lot worse than even the darkest days of September 2008:
- Whilst RPI is rising at 5.6%, regular pay is growing by only 1.6% and total pay (including bonuses) at 2.2% – either way this represents a huge squeeze on the earnings of those in work.
- Unemployment stands at over 2.5 million, up over 100,000 over the past year
- Household consumption has fallen for the past four quarters.
- The Chancellor now seems to hinting that benefits will not be uprated by inflation – a major blow to those already struggling to make ends meet after.
- Consumer confidence remains depressed.
This certainly doesn’t feel like a recovery for those in work or those out of it – incomes are falling, households are cutting back their spending and the economy hasn’t grown for nine months.