Unemployment rate is STILL above 7%, youth unemployment above 20% – And every worker owes £75,000 in UK debt

So after Cameron et-al hitting the airwaves the past couple of days telling anyone who’d listen just how awesome the UK economy is, you’d be forgiven for thinking that that the employment picture in the UK is a bed of roses – but when you look at unemployment since 2000 you can see that the UK economy is far from ‘fixed’.

UK unemployment Jan 2014(click for sharper image)

Whilst there has been a sharp decline towards 7% the past few months, the average unemployment rate between 2000 and 2008 (pre-financial crisis) was around 5%. Or in other words, some 6 years after the the financial crisis unemployment in the UK is still at elevate levels by about 2%. Apparently this passes ‘good’ news these days.

And let’s not forget the youth in the UK. According to the latest ONS figures, youth unemployment in the UK is still around 20%:

The unemployment rate for 16 to 24 year olds was 20.0% for September to November 2013, down 1.0 percentage points from June to August 2013

So everything in the UK is heading in the right direction, and the economy is back on track, right? There’s a slight problem with this ‘theory’, it conveniently forgets the debt that the UK has accumulated in the process.

uk debt 2014(click for sharper image)

Just look at the debt load pumped into the system since 2008. The debt load in the UK just before the banks blew-up was around £525bn, today that level stands at around £1255bn – more than double.

And when you look at it on a per-capita basis, the debt load per person in the UK has jumped from £8500 in 2008 to £19,650 today!

uk debt per capita(click for sharper image)

Oh, and the above numbers aren’t the ‘real’ debt of the UK because they don’t include the billions upon billions that the government borrowed to bailout the banks – when you include those bailout-billions the real debt is, according to the ONS themselves, £2,228.3bn. Which does this to the above charts.

uk debt real(click for sharper image)

uk debt per capita real(click for sharper image)

The ‘real’ debt load for every man woman and child in the UK jumps to nearly £35,000 – in 2008 this number was ‘just’ £8500. And when you look at it on a per-worker basis (30.15m), every worker in the UK ‘owes’ nearly £75,000.

So, still think an unemployment rate of 7.1% is ‘good’!?

Link to this article: : http://www.goldmadesimplenews.com/analysis/unemployment-rate-is-still-above-7-youth-unemployment-above-20-and-every-worker-owes-75000-in-uk-debt-12384/

Posted by on Jan 24 2014. Filed under Analysis. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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