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How many jobs created per 1% of GDP?
Comments
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Conventional economic theory has it that as you employ more people, their marginal productivity declines.
The reason?
You employ the best people first and the street drunks last.
As you get towards the street drunks end of things, you are employing people who are less productive so will get less additional output from them, indeed you might even get less output in total if you employ someone useless enough..
Oh I agree completely, there will always be a core of unemployed Brits because, well, for want of a better description, they are basically unemployable.
However most economic recoveries in GDP terms also correlate with a decrease in unemployment.
Just wondering how that is likely to pan out for the UK.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »
However most economic recoveries in GDP terms also correlate with a decrease in unemployment.
Just wondering how that is likely to pan out for the UK.
You mean you want Generali, or someone else, to reassure you that whatever happens house prices will go up.
This thread reeks of desperation and wishful thinking.0 -
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As I recall, GDP was higher in the 1980s compared to the 1970s but so was unemployment.
It would seem that it's not really a case of GDP per capita correlating with employment but both being affected by the similar factors like confidence.
Once people start buying goods and services and companies respond by investing and taking on more staff both GDP and employment increase.
However the one ray of hope is the inevitable increase in GDP per capita and reduction in unemployment that will occur when those 1 million Romanians arrive after christmas.
Well it wil be good for the London housing market, shed and tent makers anyway.0 -
HAMISH_MCTAVISH wrote: »Oh I agree completely, there will always be a core of unemployed Brits because, well, for want of a better description, they are basically unemployable.
However most economic recoveries in GDP terms also correlate with a decrease in unemployment.
Just wondering how that is likely to pan out for the UK.
Ah, I get you now.
Generally, GDP growth of 2-2.25% is consistent with stable unemployment. GDP growth above that should see unemployment falling. Growth got as high as 1% a quarter during the recovery from the early 90s recession in the UK. That sort of level of growth would see unemployment falling fast. During 1994, when growth was running at about 4%, unemployment fell by about 13.5% or 1.4 percentage points, from 10.4% to 9%.
Unemployment of about 5-6% is pretty much full employment. Of that group, some will be bums, some will be between ending one job and starting another and some will have been laid off and looking for something new. It took about 6-7 years for unemployment to fall that far after the last recession.
Don't forget that as unemployment falls, the numbers of people looking for work tends to rise as fewer people are 'discouraged workers' (i.e. give up even looking for work so become economically inactive rather than unemployed). The bloke that 'retired early' or stayed home to look after the kids goes back to work.0 -
Donkey's years ago I read that Switzerland had the lowest unemployment rate in Europe (well lowest apart from the fake 100% employment rate in communist countries). It was 2% and they were quite content you couldn't lower it any further as that 2% consisted of people switching between jobs.Ah, I get you now.
Generally, GDP growth of 2-2.25% is consistent with stable unemployment. GDP growth above that should see unemployment falling. Growth got as high as 1% a quarter during the recovery from the early 90s recession in the UK. That sort of level of growth would see unemployment falling fast. During 1994, when growth was running at about 4%, unemployment fell by about 13.5% or 1.4 percentage points, from 10.4% to 9%.
Unemployment of about 5-6% is pretty much full employment. Of that group, some will be bums, some will be between ending one job and starting another and some will have been laid off and looking for something new. It took about 6-7 years for unemployment to fall that far after the last recession.
Don't forget that as unemployment falls, the numbers of people looking for work tends to rise as fewer people are 'discouraged workers' (i.e. give up even looking for work so become economically inactive rather than unemployed). The bloke that 'retired early' or stayed home to look after the kids goes back to work.
It's an impressive employment rate especially considering it also had one of the largest proportion of overseas workers of any country in Europe - I think about one-sixth of the workforce was from Portugal/mediterranean countries.There is no honour to be had in not knowing a thing that can be known - Danny Baker0 -
Donkey's years ago I read that Switzerland had the lowest unemployment rate in Europe (well lowest apart from the fake 100% employment rate in communist countries). It was 2% and they were quite content you couldn't lower it any further as that 2% consisted of people switching between jobs.
It's an impressive employment rate especially considering it also had one of the largest proportion of overseas workers of any country in Europe - I think about one-sixth of the workforce was from Portugal/mediterranean countries.
one wonders how generous their unemployment benefits are0 -
house prices will go up.
.
They're already going up.
But this thread isn't about house prices, more the wider economic recovery.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Generally, GDP growth of 2-2.25% is consistent with stable unemployment.
GDP growth above that should see unemployment falling. Growth got as high as 1% a quarter during the recovery from the early 90s recession in the UK. That sort of level of growth would see unemployment falling fast.
During 1994, when growth was running at about 4%, unemployment fell by about 13.5% or 1.4 percentage points, from 10.4% to 9%.
Thanks, that's helpful.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Well they don't waste much money on everything else (apart from loads of regional parliaments). So no giant aircraft carriers sans aircraft, Trident submarines, or invasions of Iraq/ Afghanistan/ (insert Middle-eastern nation name here). Or a high-profile president you could name without looking up (it's likely to be the ordinary man or woman in a suit on the tram next to you).:Done wonders how generous their unemployment benefits areThere is no honour to be had in not knowing a thing that can be known - Danny Baker0
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