This week's jobs figures have renewed the debate about the recovery ahead. The good news was unemployment fell. The bad news was there was little evidence of any great revival in the private sector spirits.
With sweeping public sector job cuts in the autumn, it's now time to worry about the "economic death spiral" that awaits if growth starts to come in lower than budget projections.
We have to wait until next week to hear how well the economy grew between April and June, but Wednesday's job figures did confirm the recovery is underway. We know slowly, slowly Britain's output is growing. First quarter output in 2010 was £8bn bigger than the last quarter of 2009. That's growth of about £88m a day.
Read Full Article »