Labour market interventions reduce real cost of recession

Some have been suggesting that today’s unemployment figures represent a cut. I’m not so sure about that. There is certainly a reduction in the number claiming benefits, which is great news for the taxpayer, so there has at least been one economic gain in this sense.

Left Foot Forward is carrying some reasons to be cautious, but also demonstrates that the Government’s policy of doing things very differently to Mrs Thatcher is working. If the trend continues we will probably be back into growth within the next quarter, which would be a welcome (if tentative) development.