Strong Employment Growth - Weak Economic Growth For 2012

[pdq1]

http://www.bbc.co.uk/news/business-20857028

What is the likely explanation...it has the experts fooled?

Employment in private industry has passed the 30m mark yet economic growth was flatlining.

[pdq1]

I should say for correctness the employment figure is heading towards 30m

[Gromit]

It is pretty simple to understand. DIsposable income has diminished. Many people have not a wage rise for 4 or 5 years and with inflation that means they have less to spend. Also many public sector jobs have been cut and people are taking lesser paid jobs in the private sector. It is an employers Market at the moment and job rates are very low. The result is that people are managing to keep afloat but have little money for non essential purchases. Hence growth in the economy is flat.
Curious why the experts quoted cannot figure that out.

[aelmpvw]

If you told George Osborne that people had little money for non essential purchases he'd probably give you a vacant look.

[bazwillrun]

Are these the same experts that never ever predict anything correctly..."surprise rise in this or that" "surprise fall in this or that" or replace surprise with expected/unexpected or rose unexpectedly/fell unexpectedly etc etc etc

[pdq1]

I hold a different view. Many of those already had jobs but undeclared and the government has sniffed them out.

[pdq1]

If people are not spending you wouldn't expect firms to carry on employing people. If anything the fear of going under would make them cut their staff to the bone. Many people are being thrown off invalidity benefit onto job seekers. Many are working in the black economy to supplement their dole money. The government are getting strict to see them get off the dole into work. So it sounds reasonable they forgo their dole and just concentrate on the job they already had. So the increase in employment figures...nothing extra produced so no rise in growth!