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TUC Economic Quarterly 7

Issue date

This quarterly TUC report provides an analysis of UK economic developments over recent months; focuses on the current labour market compared to pre-recession levels; and includes a spotlight feature on productivity since 2008. 

Summary

  • Economic activity appears to have weakened a little from the end of 2014 and into 2015.
  • Historic imbalances have not been repaired, with manufacturing back in decline.
  • Household and corporate savings have been reduced over the past years, and deleveraging may have stalled.
  • As a share of GDP, the current account deficit is at an all-time high.
  • Public sector deficit reduction has fallen far short of expectations, and government cuts have made no impression on public debt.
  • Since 2008 there has been a major shift in employment  towards part-time work, self–employment and insecure work.
  • Underemployment remains high.
  • Young people have not benefitted from the recovery in the labour market.
  • From a longer standing view, real earnings remain greatly below pre-crisis outcomes.
  • Only an increase in productivity will bring sustained wage increases in the medium term, but low productivity has been one of the characteristics of the labour market recovery.    
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