More records broken by Labour.

[motorbiking]

All the research shows Economic inactivity under the Tories fell from the last labour government, went up during covid and then went back down again. It's the same now as it was in 2019.

LFS: Economic inactivity rate: UK: All: Aged 16-64: %: SA - Office for National Statistics

Productivity rate, I'm not even sure how much that matters, so much influences to the point where it may not be relevant. Worker demographics has as huge influence.

 

[MNW67]

I believe productivity is massively important. A low wage, low skill economy has low productivity. This was one of the puzzles under the Tories.

Over the past year, the number of extra people becoming economically active roughly balances the increase in unemployment. Obviously, in the longer term I am aware of the lump of labour fallacy. But in the short term we may just be going through a long overdue rebalancing.

 

[Ivor Windybottom]

The massively increased costs of employment mean that it's now more likely that employers will buy machines so they can make employees redundant. Or just stop offering the services that low-paid staff did altogether, i.e. give up completely. This eliminates low-skill, low productivity jobs so increases overall average productivity.

Those at the bottom get sacked first, the higher value jobs remain. This is the savage reality of life under socialism. Those with jobs are better off, but there are fewer of them.

If you had a half and a pint of beer and I threw the half down the sink then you now have less beer, but the average size of each beer you have has increased.

 

[motorbiking]

I believe productivity is massively important. A low wage, low skill economy has low productivity. This was one of the puzzles under the Tories.

It's very difficult to do any real analysis with the covid years screwing the data.

Over the past year, the number of extra people becoming economically active roughly balances the increase in unemployment. Obviously, in the longer term I am aware of the lump of labour fallacy. But in the short term we may just be going through a long overdue rebalancing.

It's not changed for a long time. Its very hard to include the covid years.

 

[motorbiking]

The massively increased costs of employment mean that it's now more likely that employers will buy machines so they can make employees redundant. Or just stop offering the services that low-paid staff did altogether, i.e. give up completely. This eliminates low-skill, low productivity jobs so increases overall average productivity.

Those at the bottom get sacked first, the higher value jobs remain. This is the savage reality of life under socialism. Those with jobs are better off, but there are fewer of them.

If you had a half and a pint of beer and I threw the half down the sink then you now have less beer, but the average size of each beer you have has increased.

more likely that jobs get moved overseas.

 

[MNW67]

The breakdown of economically inactive people is interesting. What does it actually mean when we hear that nine million people are economically inactive?

It includes 1.5 million children in sixth forms etc.

It includes 1.5 million housewives.

It includes another 1.3 million university students who just live off their student loans and don't work part time.

It includes 1.2 million early retirees.

The balance is about 3.5 million people who are long term sick.

It does not include the unemployed.

 

[Ivor Windybottom]

more likely that jobs get moved overseas.

Often jobs don't get directly moved, the UK company just gives up completely as it can't compete with foreign suppliers.

In our local village we have two newbuild housing estates where the factories once were. Neither business is operating from China, they've simply vanished.