Recession 'looks the same as in the 80s'
Jun 23 2009
The ongoing downturn is proving to be similar to the deep recession experienced in the 80s, the Trades Union Congress (TUC) claims.
According to the group, the current economic climate has more in common with the situation facing the UK two decades ago than the more shallow downturn of the 90s.
The TUC's latest recession report reveals that the rate of unemployment has increased by 30 per cent over the past year, exceeding the 22 per cent figure seen in the 90s' downturn and more in line with the 29 per cent figure of the earlier recession.
Brendan Barber, general secretary of the organisation, says: 'Contrary to some commentators, there are no signs that the outlook for unemployment is starting to improve.
'The difference between the number of people losing their jobs and finding new ones is already much worse than in the 90s' recession.'
Furthermore, the study predicts that the contraction in gross domestic product at the end of this year is more likely to be comparable with the average contraction of 4.6 per cent across the 80s' recession than the more recent 2.5 per cent fall in growth.
However, Barber adds that the right government action may make the recession shorter and less severe, although 'wrong' moves such as large cuts in public spending could exacerbate it.
According to the Office for National Statistics, UK unemployment currently stands at more than 2.2 million - the highest for 12 years.