After a few days of doom and gloom and even as the stock markets around the world are rallying after what has been popularly termed as Black Friday of 2011, there are two pieces of information that makes one think that perhaps the economies are not that bad after all.
The US has announced today that the unemployment rate dipped from 9.2% to 9.1% and that about 117,000 jobs were added in July. Closer to home, in the UK official figures show that the number of businesses going bust fell by 5% to 1,232 in the second quarter 2011 and more importantly the number of individuals going bust has also stabilised. Although they went up slightly by 368, they continue to remain at levels of 30,513 for the past few months.
In the US, while the unemployment numbers were much better than most economist expected, they believe it is still below the required levels needed to keep pace with the demand generated by people newly entering the job market. In the UK, economists argue that while the number of businesses going bust seems to have stabilised, it is still 22% higher than a year ago.
Continuously low interest rates by the Bank of England and the Merlin agreement that is forcing the banks to lend more to the SME sector have definitely helped stabilise the number of businesses and individuals going bust. Is this stability or just the storm before a next wave of full blown recession, only time can tell? However it is clear that the unemployment is not going to reduce for the foreseeable future and people will find it increasingly competitive to find jobs. It will take more than just a decent university degree and enthusiasm to find jobs.
Kesh Thukaram, Director Best Insurance said that the stability of these indicators cannot be brushed aside and we cannot afford to get consumed in the doom and gloom approach. However, we cannot ignore the facts that the UK job market landscape has changed for ever. He added that Best Insurance has seen a steady growth in the number of income protection and payment protection policies they sell.
Best Insurance is one the UK leading provider of income protection and payment protection insurance. Highly qualified brokers, wide range of products and bespoke customer service that is offered by Best Insurance is widely acknowledged.
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