The Labour Government

[stan bowles]

Well, sorry to disappoint you, but the experts are blaming it on the JLR cyber attack.

Good to know there won't be any more cyber attacks in the future that won't hit harder than this one, then.

 

[hampshireblue]

I assume you mean that full employment is usually seen to exist when the unemployment rate is around 4-5%, rather than employment itself.

And that inflation tends to rise when the unemployment rate falls below this level, rather than rises, as you state.

I suppose it’s a nice attempt to steer the conversation away from just how inept this government is. But if the natural rate of unemployment has indeed increased over the past year or so, then Reeves’ policies are likely to have driven it higher. Higher employment taxes, outsized increases in the minimum wage and concerns around the ruinous proposed change in employment rights are all likely to have increased structural unemployment.

Add that to the fact that the economy has flatlined since May, and it’s hardly a surprise that the unemployment rate keeps rising. It is what Labour Chancellors do, after all.

Yes, sorry I typed it quickly. An unemployment rate around 4-5% is seen as an economy operating at or close to capacity. And yes, inflation rises as the level of unemployment falls.

There are a myriad of reasons why unemployment has risen including the ones you have mentioned. It's interesting you only support employers and clearly believe the minimum wage is set too high as well as chooing to ignore my points on apprenticeships and the large number of vacancies.

The highest rate in modern times was nearly 4 years into Thatcher's regime. But that couldn't be blamed on Labour as it was way more than 18 months into her government. ;-)

 

[True_Blue69]

Still find it bewildering that employment figures keep coming out without specific mention of AI and its effects. People instead prefer squabbling over whom they think can/could do better, when there’s no discussion of the elephant in the room.

I'm not having that many jobs have fallen to AI. Yes it's a useful tool and can help drive efficiencies but I don't see many roles that can be replaced by it. The NI change is far more likely to be the cause, small businesses that employed 3 or 4 part time people to get round paying it will have had to let 1 go to keep the books balanced.

 

[Gabriel]

I'm not having that many jobs have fallen to AI. Yes it's a useful tool and can help drive efficiencies but I don't see many roles that can be replaced by it. The NI change is far more likely to be the cause, small businesses that employed 3 or 4 part time people to get round paying it will have had to let 1 go to keep the books balanced.

I wish that were the case, but the ages of many who are unemployed should be a warning sign. Companies no longer need as many entry-level employees, and precious few jobs are going to be safe from its effects.