Thursday, September 17, 2009

Rise In Youth Unemployment

The first signs of economic recovery are welcome, but, it can't hide the fact there is a huge amount off spare capacity in the economy. And perhaps the worst feature of this recession is the sharp rise in youth unemployment. Statistics suggest 1 in 5 of 16-24 year olds are unemployed. The number of jobless in this age group rose from 928,000 to 947,000. (link)

It suggests that unemployment is worse than official figures suggest. Using the claimant count method we have an unemployment rate of 8%. But, this hides the people who are economically inactive but not counted as unemployed. It may also reflect demographic changes that are causing a shrinking working population at the older age group.

Total unemployment rose 210,000 to 2.47m in the three months to July, taking the jobless rate to 7.9% as measured by the claimant count.


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