The unemployment rate for the three months to March 2010 was 8.0 per cent, up 0.2 per cent on the quarter, the Office for National Statistics yesterday revealed.
The ONS added: ‘The number of unemployed people increased by 53,000 over the quarter to reach 2.51 million, the highest figure since the three months to December 1994.’
So much for the recovery!
In fact, the number of people unemployed for more than twelve months increased by 94,000 over the quarter to reach 757,000, the highest figure since the three months to May 1997.
The number of ‘inactive people’ of working age increased by 88,000 over the quarter to reach a record high of 8.17 million.
Almost half of this quarterly increase in inactivity was due to the number of students not in the labour market which increased by 43,000 on the quarter to reach 2.30 million.
The crisis is deepening!
Bank of England governor Mervyn King yesterday revealed that he had earlier met the new Chancellor, Osborne and warned that the next few years are ‘going to be painful’ and that ‘markets would expect a new government to take decisive action’, and that ‘the cuts will have to start this year’.
King gave his support to the Tory Lib Dem coalition and criticised the previous Chancellor, Darling, by saying ‘that the agreement that has been reached between the Conservatives and Liberal Democrats is a very strong and powerful agreement to reduce that deficit and to take more action than was embodied in the budget in the Spring’. This was Darling’s budget.
King also warned of the glaringly obvious that ‘the financial crisis is far from over’, remarking that ‘the banking crisis has turned into a potential sovereign debt crisis.’
He added: ‘The window of opportunity afforded by last weekend’s decisive actions must be used to tackle excessive fiscal deficits and rebalance demand by restoring competitiveness where needed.’
He further warned: ‘The projected outlook is very similar to that presented in the February Report but with somewhat greater downside risks in the short run, reflecting recent events in financial markets and their implications for demand and output.’
The Lib Dems have sold themselves for five cabinet posts and an additional 18 or so minor government jobs.
In return the Tories get, as the text of the Conservative Lib Dem deal states, that ‘The parties agree that deficit reduction and continuing to ensure economic recovery is the most urgent issue facing Britain. We have therefore agreed that there will need to be:
‘a significantly accelerated reduction in the structural deficit over the course of a Parliament, with the main burden of deficit reduction borne by reduced spending rather than increased taxes; . .
‘The parties agree that a plan for deficit reduction should be set out in an emergency budget within 50 days of the signing of any agreement; . .
‘The parties agree that modest cuts of £6 billion to non-front line services can be made within the financial year 2010-11, subject to advice from the Treasury and the Bank of England on their feasibility and advisability.’
Plus ‘The Government will be committed to the maintenance of Britain’s nuclear deterrent, and have agreed that the renewal of Trident should be scrutinised to ensure value for money. Liberal Democrats will continue to make the case for alternatives.’
Plus: ‘The parties commit to establishing an independent commission to review the long term affordability of public sector pensions, while protecting accrued rights.’
The Lib Dems are now pledged to keep the Tory juggernaut in power for five years as it wades into the jobs, wages, pensions and basic rights of the working class to pay for the crisis that the bankers and bosses created.
The trade unions must answer the first attack on their members from this unholy alliance by calling a general strike to bring down the coalition and go forward to a workers government. There is no other answer possible.