Thursday, 16 October 2014

The Figures

Unemployment is down, again, below 2 million, the lowest for eight years, well let's take a look at the figures.

They claim that one million new jobs have been created over the past five years, these are 20 hour a week, £7.00 an hour jobs. They have replaced one million 40 hour a week, £32.00 an hour jobs.

The previous jobs taxed at 40% provided 26 billion pounds [40 * 32 * 52 * 1,000,000], the current jobs do not provide tax [20 * 7 * 52 * 1,000,000] as they are below the 10,500 bracket.

It was not enough to cheer investors however, with the FTSE 100 closing down 181 points or 2.8% at 6,211 – the biggest one-day fall since June 2013.

Despite the rise in UK employment, pay growth remained sluggish at 0.7% between June and August compared with a year earlier, prolonging the fall in real pay as wage growth continued to lag behind CPI inflation which was 1.5% in August and 1.2% in September. It was, however, a slight improvement on the 0.6% pay growth between May and July.

If the government are so keen on getting the countries deficit down, where are they going to get the income from?

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