7th Week Post on Economics News about the UK

Original Article: http://www.businessweek.com/news/2012-05-16/u-dot-k-dot-unemployment-unexpectedly-falls-in-stabilization-sign

The unemployment rate in the United Kingdom as measured by International Labour Organization methods demonstrates decline in the first quarter of the year. The newly published figure is 8.2 percent, as compared to a 8.3% at the beginning of 2012. Jobless-benefit claims also fell by 13,700 from March. Compared with what the Bank of England had predicted before, the growth in the job market is still weak. Yet, the data have delivered a promising signal that the UK is recovering, though at a relatively slow rate, from the crisis, as is shown by an increasingly stable labor market. As a positive consequence, firms are encouraged to expand business with the sound economic data and to increase investment. With rising confidence from firms, it is expected that firms will expand hiring and provide more jobs in the market. It is also hoped that a stable economy will attract more foreign firms to establish business within the UK and thus, provide more employment. However, the recent negative news with regard to the Greek exit from the Euro Zone has raised concern within the UK borders. Multinational companies that have a significant volume of trades with the Euro Zone are specifically concerned with the outcome of the incident, since exports to Europe are predicted to decline as its economic prospect deteriorates. It is anticipated that the new Euro Zone financial hit will have a consequential influence over the British economy, especially that firms in the exporting industry are likely to cut employment as a response to the ambiguity in the European economy. This will again strike the job market in UK negatively.