Briefings and Blog
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This blog will be keeping you regularly updated with key information that has an effect on the Devon economy. Devon County Council’s Economy team will be sharing their views on the economy.
How strong is Devon’s economy?
This really depends on how you define strong. There are a number of indicators where Devon performs well and a number of others where the county performs less well.
Unemployment for example is and has been for some time, lower than the...
All Aboard..
With this months figures showing the employment train is leaving ‘Recession Station’ the immediate question has to be where is it going? Nationally the rate of unemployment has fallen and the number in employment has risen....
We are all in this together
We are all in this together – or are we? The traditional economist view is, of course, yes: we are all part of one big economy, we all have a role to play and the actions of one economic agent will impact on another. I recall my very first...
Briefings
Job Seekers Allowance Analysis - May 2012
The number of people claiming Job Seekers Allowance (JSA) in Devon has fallen for the second consecutive month. In April there were 10,158 people claiming JSA which represents 2.2% of the working age population. This has fallen from last month where the rate of the working age population (16-64) claiming this out of work benefit stood at 2.4%. Between March and April the number of people claiming JSA fell by 7.7% (851claimants). This direction of travel follows the UK trend however Devon’s fall in unemployment has occurred at over double the rate of the national average.
Job Seekers Allowance Analysis - April 2012
The number of people claiming Job Seekers Allowance (JSA) in Devon has fallen for the first time since
October last year. In March there were 11,009 people claiming JSA which represents 2.4% of the working age population. This has fallen from last month where the rate of the working age population (16-64) claiming this out of work benefit increased to 2.5%, a return to the level seen in the height of the 2008/09 recession. This month the number of people claiming JSA has fallen by 2.7% (306 claimants) compared to last month. This direction of travel follows the UK trend albeit Devon’s fall in unemployment has occurred at a faster rate than the 1.1% decrease seen nationally.
Budget 2012
Document:
Based on the announcement of today’s Budget statement the outlook for the UK economy is
looking slightly more encouraging than it did nearly four months ago, when the Chancellor of the
Exchequer delivered his Autumn Statement.
The Chancellor is, however, in the difficult position of not being able to significantly increase
borrowing to fund net tax cuts which could stimulate growth, for fear of triggering a bond market
ratings downgrade and interest rate hikes. He is also unable to cut Government spending much
further to help pay off Government debt, which would help to keep bond rates, and therefore
interest rates, low (and act as a longer-term growth stimulus). This is due to the fact the welfare bill
is high given of current levels of unemployment and the danger that further significant cuts would
impact negatively upon GDP and unemployment in the short-term.