© Ronald McQuaid
|
Currently the trend is definitely worsening with a continuing rise of unemployment. Moreover, we are likely to face a spike in youth unemployment during the summer period.
What impact has the BOE asset purchasing programme had on the labour market?
Effects on lending to businesses seems to be restrained. With inadequate capital investment both in infrastructure and within businesses there is some, but limited, benefit to labour market.
What measures might also be undertaken to stimulate job growth?
Revenues should be transferred to capital expenditure, even though the former may reduce retail spending and similar indicators. Overall there should be a positive impact, especially if investment was 'productive' (e.g. reduced future costs or increased future efficiency or access to markets etc.). Additionally, work experience schemes should be provided to young people that also have a strong training and education component.
What is your short and long term outlook for the labour market?
In the short-term there is going to be a continued deterioration of the situation. Since later in the year there could be major global economic problems, with the Eurozone's debt crisis being in focus, we might see further worsening lasting for some time. In addition to that in the long-run demographic issues will put pressure on the labour market - older workforce will have lower participation rate, thus there will be relatively more opportunities for younger workers.