New government, new unemployment, no New Deal?

With the new Cleggeron government, we all looked forward to renewed economic growth, efficient spending and an improvement in unemployment figures. Unluckily, since Dave and Nick decided to cut spending on everything worthwhile, it seems that even more people are at risk of losing their jobs. A leaked treasury report - publicised by The Guardian - revealed that 1.3m jobs could go by 2015, 120,000 of these from the public sector. Although the government say that experts predict a fall in unemployement and a rise in employment, many are dubious. The TUC General Secretary, Brendan Barber, warned of 80's reminiscent dole queues, widespread poverty and a widening north-south divide. There was a 7.9% drop in unemployment to 2.47m in the three months to April, and over the quarter an increase of 23,000 - less than expected. Jobseekers Allowance claims fell by 30,900 to under 1.5m, the fourth consecutive monthly decline. I don't know about you, but I find it confusing to be told that unemployment has risen whilst JSA claims have dropped - are people therefore not claiming even though they are out of work? Or are they, instead, claiming allowances such as Income Support, or Employment and Support Allowance (preciously Incapacity Benefit) due to illness or disability? More worryingly, there was an increase of 85,000 to 772,000 people who have been out of work for over 12 months - the highest since April 1997. One million young people are unemployed and struggling to even start a job or career.

Those of us who are lucky enough to remain employed are still suffering from the backlash of the credit crunch. Whilst we all hoped for house prices to drop and stabilise, they have again started to rise, even if only by 0.1% in June. This still means that the average house price in the UK is £170,111. Compared to the average salary of £25,428 (£489 per week), this is still high enough to prevent first time buyers and those on low incomes from getting mortgages. Although pay rose in the quarter to April, by 1.9%, this was still well under the retail inflation rate of 5.1%. The cost of living is rising for everyone, and it is the unemployed that are worst hit.

Speaking of unemployed, it looks like Fabio Capello might be on his way out. It's still too painful to talk about the England v Germany fiasco that was Sunday afternoon's entertainment, but suffice to say it seems likely that he will be sacked, albeit with a massive golden handshake. Perhaps one of the worst ways to be sacked, publicly... but you can't help feeling he deserves it. Other great public sackings include General Stanley McChrystal, the former staff of Lehman Brothers and Chelsea Taylor, a 16 year old waitress who was sacked via... wait for it... Facebook. How embarrassing. Still, she can always sign on and benefit from one of the government New Deal back to work schemes. Oh no, she can't, can she? Because they're all on hold pending the new government's decision about whether to carry on with them or not. Of course, it would make perfect sense to scrap such schemes, just when even more people are doomed to be put out to pasture over the coming year and years.

I was under the impression that the Tory-Lib Dem government had some cunning plans to boost the economy and drastically lower unemployement figures. So I can only hope the Cameron-Clegg marriage knows what it's doing... before we start to feel nostalgic for Gordon and his New Deals.