The economic outlook for the coming decade as a whole could prove a "DRAG" (external website), with little prospect of a return to pre-recession growth levels for the time being, and the spectre remaining of another collapse into recession or worse, according to Guardian economics editor Larry Elliott.
Elliott says:
Therefore, as the latest overview of the economic outlook from XpertHR salary surveys notes, the 2010 general election (which Gordon Brown is later today expected to call for
Thursday 6 May 2010) is likely to mark a decisive turning point. The period of stasis and deferred decisions on what is to be done to ensure recovery will soon be over.
The Government and UK workers will be forced at last to confront the realities of the new economic landscape. At some point after the election, public spending cuts will hit employment and pay awards hard. And soaring inflation and sluggish economic growth could yet result in a return to stagflation.
Whichever party wins the 2010 general election, it is certain that they will have a real fight on their hands to ensure that economic recovery is sustained.
Get ready for the austerity decade. [...] We've had what Mervyn King once called the NICE period of non-inflationary constant expansion but now we face a long DRAG - deficit reduction, anaemic growth.He argues that the coming decade will prove to be "payback time" for the 25-year boom period enjoyed by the global economy between 1982 and 2007. Perhaps more worryingly still, Elliott reminds us that "the structural weakness that caused the crisis remains untackled. We are living in a fool's paradise."
Therefore, as the latest overview of the economic outlook from XpertHR salary surveys notes, the 2010 general election (which Gordon Brown is later today expected to call for
Thursday 6 May 2010) is likely to mark a decisive turning point. The period of stasis and deferred decisions on what is to be done to ensure recovery will soon be over.
The Government and UK workers will be forced at last to confront the realities of the new economic landscape. At some point after the election, public spending cuts will hit employment and pay awards hard. And soaring inflation and sluggish economic growth could yet result in a return to stagflation.
Whichever party wins the 2010 general election, it is certain that they will have a real fight on their hands to ensure that economic recovery is sustained.
| Tweet |
|
| Permalink | Email this |
Comments (2)
Your point on UK workers facing change over the next decade is very important.
We recently published a report that looks at employment issues in the next decade, and found that a band of workers are at risk of becoming “excluded” by 2020. Both employers and individuals need to act to ensure that they have the necessary opportunities, skills and qualifications to adapt to the economic realities of 2020. Check out our findings about the excluded worker in Visions of Britain 2020 here: http://www.visionsofbritain2020.co.uk/our-vision/press-releases/visions-2020-launched
Posted by Gillian Fox | April 9, 2010 3:04 PM
Posted on April 9, 2010 15:04
Thanks for the comment, Gillian, for highlighting the findings of your report, the overview of which makes for interesting reading. The argument that the UK workforce is "polarising into two distinct groups - the elite and the excluded" doesn't sound too far from a Marxist concept of history. What sort of consequences would you expect to see emerging if UK employers fail to engage with the challenges presented by such polarisation?
Posted by Michael Carty
|
April 9, 2010 5:39 PM
Posted on April 9, 2010 17:39