Unemployment predictions hit 3.25 m / by Nick Ierodiaconou

http://news.bbc.co.uk/1/hi/business/7836489.stm The projected unemployment figures just keep getting bleaker...

'The Ernst & Young Item Club says the number of those out of work in the UK will pass 3.25 million by the end of 2010, and hit 3.4 million in 2011. "All of the economic statistics are now in free-fall," it said in its forecast. It warned the next 12 months would see the UK economy suffer its largest contraction since 1946.'

The crucial difference here between the loss of 3 million jobs in the 1980s and now - is that the most grave effects were localised to post industrial communities. The impact of a post credit recession is ubiquitous - there are going to be millions of unemployed people effectively pepperpotted throughout our suburban landscape without adequate access to local centres [given they'll find it tough to afford petrol for their cars] and without the community capital to forge alternative survival tactics.

This is pretty grave. In addition we don't have the luxury of a boom in financial services or export trade to keep the national economy afloat. I can see why its going to be as bad as 1946.

We can all understand that the banking bailout has a role [though the extent at which it stops being viable needs to understood...] - and I hear it being talked about as only one part of a raft of interventions - I just want to know a little bit more about what the others might be. Where and into what do we really need government to invest? 3 million depressed, isolated unemployed people compels us to make sure we are making the right response...

CM