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Realistbear

Shock Unexpected Rise In Unemployment

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http://uk.news.yahoo.com/22/20110216/tuk-uk-britain-jobs-fa6b408.html

More Britons out of work in January
4 hours 33 mins ago
Christina Fincher and Keith Weir
The number of Britons claiming unemployment benefit rose in January for the first time in four months against a background of slowing pay growth, official data showed on Wednesday.
Sterling fell and gilt futures rose on the figures which suggested Britain's labour market was deteriorating even before the bulk of the government's austerity measures take effect, while subdued wage growth suggested domestic inflation impulses are well under control.
The Office for National Statistics said the number of people claiming jobless benefit rose by 2,400 last month, following successive falls in the previous three months. Analysts had forecast a fall of 3,000.

Watch the house prices really start to tumble now. The trigger has been pulled. Sad for those who are about to lose their jobs but for those waiting for affordable housing hog heaven is coming soon.

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Sorry RB - now you're saying it is uemployment that is the trigger?

I thought it was interest rates that were the trigger?

Or are you saying now that both need to happen?

Are there any more you'd like to add?

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Sorry RB - now you're saying it is uemployment that is the trigger?

I thought it was interest rates that were the trigger?

Or are you saying now that both need to happen?

Are there any more you'd like to add?

I have always believed jobs are the key to the housing market. Unemployed people can't buy and they MUST sell.

IR will be a close second in fire-power as overleveraged people and greedy BLTers will suffer with a 50% rise in their rate--but Merv cannot do this as he knows the consequences. He will let unemployment take the steam out of inflation as jobless people don't buy much and don't pay much.

Edited by Realistbear

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I have always believed jobs are the key to the housing market. Unemployed people can't buy and they MUST sell.

IR will be a close second in fire-power as overleveraged people and greedy BLTers will suffer with a 50% rise in their rate--but Merv cannot do this as he knows the consequences. He will let unemployment take the steam out of inflation as jobless people don't buy much and don't pay much.

Yeah, but that's really crap, though. If having a large rate of unemployment means that inflation is cut down because they can't afford to buy, well - what does that say about what we hope for. Sad really.

Much as I would like to see a reduction in house prices it's hardly ethically sound that we wait for unemployment to drive the drop.

It's as ethically unsound as the greedy BTLers doing better in life at others' misfortunes. We are no better if we want HPC off the back of high unemployment.

GO should be raising money off secondary homes and BTL, simple as that. If the very soul of HPC is to push for a house for all, then hoping for unemployment-driven house deflation will take us further away from that ideal. And ultimately, most - if not all - BTLers will still be able to keep one house if they were taxed on a second.

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Why is it a shock ? What else do they expect to happen a load of people arriving on space ships from Mars creating demand and thus more employment . There is only one way to go for unemployment and that is up , up ,up . Just to add it is also much higher than the fiddled figures.

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Yeah, but that's really crap, though. If having a large rate of unemployment means that inflation is cut down because they can't afford to buy, well - what does that say about what we hope for. Sad really.

Much as I would like to see a reduction in house prices it's hardly ethically sound that we wait for unemployment to drive the drop.

It's as ethically unsound as the greedy BTLers doing better in life at others' misfortunes. We are no better if we want HPC off the back of high unemployment.

GO should be raising money off secondary homes and BTL, simple as that. If the very soul of HPC is to push for a house for all, then hoping for unemployment-driven house deflation will take us further away from that ideal. And ultimately, most - if not all - BTLers will still be able to keep one house if they were taxed on a second.

No one is hoping to be unemployed or looking forward to seeing the terrible damage unemployment does to the heart and soul of a nation. But not wanting it to happen and wishing it away is not reality. It IS going to happen and it is going to be very ugly. But this is the price for the years and years of HPI and greed.

Edited by Realistbear

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Howard Archer, chief economist at IHS Global Insight, said the slow down in wage growth was "rare good news" for the Bank of England. He said: "This indicates that higher inflation and rising household inflation expectations are so far not feeding through to push up wages."

He added: "The main test is yet to come with many of the pay agreements for 2011 yet to be settled. Future pay developments will play a critical role in determining exactly when and how quickly the Bank of England will raise interest rates. We expect wage growth will remain muted due to workers' weak bargaining position given high and likely to rise unemployment. This is a key factor underpinning our belief that the Bank of England will only raise interest rates gradually."

See, it's all part of the master plan.

Edited by Little Professor

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Is this increase a surprise? Those who got christmas jobs (which helped the figures stay down for 3 months) are now no longer needed and have been sadly dumped back onto the dole queue

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In a normal market I would agree with you RB. But losing your job nowadays means you will be entitled to SMI and even if you're not the banks are under pressure from the government not to reposses. Therefore, IMO, more unemployment will not have any affect on the housing market.

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http://www.bloomberg.com/news/2011-02-16/u-k-unemployment-unexpectedly-increases-as-government-starts-cutting-jobs.html

U.K. Unemployment Unexpectedly Advances as Government Starts Cutting Jobs
Prime Minister David Cameron is counting on hiring at private companies as his government embarks on budget cuts that will cost 330,000 public-sector jobs over the next four years. Bank of England Governor Mervyn King said today’s figures underscore the “significant margin” of spare capacity in the economy that is helping to counter inflationary pressures.

Or

Surprise as Fewer people in work due to higher unemployment :lol::lol::lol:

What I cannot understand is why they keep saying every bit of bad news is "unexpected." They are either dreamers or cannot forecast worth sh*t. Probably both.

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