- Mon Feb 21, 2011 11:00 am
#428942
A recession is two quarters of contracting GDP. This happened in the last quarter of 2008 and first two quarter of 2009. So technically it was 1st July 2009 when we came out of recession. However with current ONS figures indicating a contraction of spot 5% in Q4 2010, depending on revision, and also depending whether contraction occurs Q1 2011, we could actually now currently be in a recession, which would then qualilfy as a double dip, and with low interest rates, low growth, and a contracting economy, we could also be in a period of stagflation, someting the Japanese have struggled with for over 12 years now.
With the public sector accounting for over 30% of Jobs, and that they are generally looking at 5 to 10% reduction in staffing over the next two years, it really is a balancing act as to whether the Private sector can absorb enough of this slack to prevent a huge increase in unemployment, and the resultant softening of demand led growth.
Personally I blame the growth of internet forums & Facebook Gardening games, for the resultant dip in productivity amoungst the Uk workforce as a whole.
EDIT. Interstingly on BBC news a survey reveals 57% of private employees would not look to recruit someone from the Public sector. Now that does tell a story.
Last edited by Boboff on Mon Feb 21, 2011 12:46 pm, edited 1 time in total.