Guardian UK: 'Tens of thousands to be laid off every week' as UK falls into recession

[marmar]

'Tens of thousands to be laid off every week' as UK falls into recession
MPC member warns of 'horrible surprise'
Gloomy assessment sends London shares falling


Graeme Wearden
guardian.co.uk, Thursday September 11 2008


Tens of thousands of people could be laid off every week in the run-up to Christmas as the UK economy falls into recession, David Blanchflower of the Bank of England's monetary policy committee warned today.

Blanchflower told MPs to expect "a large increase in unemployment", and warned that a "horrible surprise" could be just around the corner. The gloomy assessment sent shares in London falling, and also weakened sterling yet further against the dollar.

Blanchflower, who has repeatedly tried and failed in recent months to persuade the MPC to cut interest rates, predicted that the unemployment count will rise by 60,000 a month for several months in a row, probably starting in October.

"I believe we will see a deeper economic decline than other people think," Blanchflower told the Treasury select committee, ruling out the possibility that the UK GDP will not shrink.

He added that the employment market will come under extra pressure this autumn when school leavers look to join the workforce.

The claimant count has already risen for the last six months. In July it increased by 20,100, the fastest rate since the early 1990s. .....(more)

The complete piece is at: http://www.guardian.co.uk/business/2008/sep/11/recession.unemploymentdata

[nadinbrzezinski]

1. It is starting to look a lot like 1929

I swear

[GreenPartyVoter]

2. Well, I wasn't there so I wouldn't know

:hide:

:rofl:

J/k! :hug: