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Struggling economic recovery will have serious consequences for labour market

Andrew Sissons

26 July 2011

Commenting on today’s GDP figures, Andrew Sissons, researcher at The Work Foundation, said:

“Today’s figures confirm the long-standing suspicion that the economic recovery is struggling to gain momentum. While it appears that the Japanese tsunami and the royal wedding dampened growth, the fact remains that the economy is still performing poorly. The widely heralded export-led boom in manufacturing appears to have fallen away, and Britain’s severe trade deficit is continuing to act as a major drain on the economy. There is some good news however, in that knowledge-intensive services remain the best hope for driving a future recovery, as emphasised by their steady growth over the last quarter.

 “These results will have serious consequences for the labour market. Over the last year, the economy has created over 300,000 jobs without any significant growth in output. This jobs recovery is very unlikely to be sustained without much stronger GDP growth over the coming months. Productivity per worker is not growing significantly, and that will continue to squeeze living standards.

 “The lack of growth in the economy reiterates the need for government to put in place a more ambitious and credible long-term plan for growth. This plan must be focused on supporting innovation and investment in Britain, rather than cutting corporation taxes and hoping for the best.”


Notes to editors

  1. Andrew Sissons and Charles Levy are available for interviews and briefings.
  2. The Work Foundation is the leading independent authority on work and its future. It aims to improve the quality of working life and the effectiveness of organisations by equipping leaders, policymakers and opinion-formers with evidence, advice, new thinking and networks. In October 2010, Lancaster University acquired The Work Foundation, forming a new alliance that will enable both organisations to further enhance their impact.

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