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Unemployment Rate Drops To 7.4%

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.....but what are the quality of these jobs?....there are jobs and there are jobs........many of the low paid monotonous jobs without any future job prospects are only bearable the short time, very few could keep with it longer than a moderate period of time without going insane or getting bored out of their mind, even less if they feel they are being used/exploited or are undervalued.

How much in top-up benefits are these jobs costing tax payers?.......how much in extra profits for major businesses and shareholders who know they are being subsidised by the tax payer by only paying a proportion of the salary, but get all the benefit of a cheap worker.

I don't know what the answer is.....it is good unemployment is down, but that is not the whole story, it is not all rosy. ;)

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Does that mean that higher interest rates are more likely?

It's a sign in that direction. A positive number makes it look like interest rates will rise so price of gilts trading today falls a little and pushes up the yield.

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Does that mean that higher interest rates are more likely?

There's often a knee-jerk reaction when an unexpected figure like this is released due to traders covering positions, so the yield may go lower again once things have settled down.

If the yield stays elevated (especially in relation to the US 10-year) then it's an indication that the market believes the BoE will start raising rates somewhat earlier than previously anticipated.

Remember though that the 7% unemployment threshold in the MPC's forward guidance represents the point at which the Committee has said it will begin to consider tightening monetary policy. It's not a trigger.

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.....but what are the quality of these jobs?....there are jobs and there are jobs........many of the low paid monotonous jobs without any future job prospects are only bearable the short time, very few could keep with it longer than a moderate period of time without going insane or getting bored out of their mind, even less if they feel they are being used/exploited or are undervalued.

How much in top-up benefits are these jobs costing tax payers?.......how much in extra profits for major businesses and shareholders who know they are being subsidised by the tax payer by only paying a proportion of the salary, but get all the benefit of a cheap worker.

I don't know what the answer is.....it is good unemployment is down, but that is not the whole story, it is not all rosy. ;)

It's Chriiiiiiiiiiiiiiiiiiiistmas! Seasonal employment greetings.

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.....but what are the quality of these jobs?....there are jobs and there are jobs........many of the low paid monotonous jobs without any future job prospects are only bearable the short time, very few could keep with it longer than a moderate period of time without going insane or getting bored out of their mind, even less if they feel they are being used/exploited or are undervalued.

I think you will find that with cutbacks in welfare there will be a change of mindset with the unemployed. Many more jobs will become acceptable. No longer will people be able to say I don't like that, I'm bored.

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Falling inflation (yesterday) at the zero bound is of course a rise in the real yield (less negative) . i.e. monetary tightening.

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Falling inflation (yesterday) at the zero bound is of course a rise in the real yield (less negative) . i.e. monetary tightening.

Households Raid Savings At Record Rate - Sky News
news.sky.com/story/1176798/households-raid-savings-at-record-rate‎
3 Dec 2013 - Households are pulling money out of their savings accounts at the ....
Savings drop to lowest level in 40 years, Bank of England figures ...
www.telegraph.co.uk › Finance › Personal Finance › Savings‎
2 Dec 2013

And probably more of this... from people who've experienced changed employment circumstances, and also for older people. My savings/house deposit is becoming more valuable, imo, despite really poor interest rate. Not sure if Gilt market has taken all that into account, unless it's factoring in future benefits to economy of a HPC.

Over-55S Spent A Quarter Of Their Savings To Live Last Year.
boomers going broke
Wed, Dec 7, 2011
'People over 55 have had an "annus horribilis" with their bank savings falling by more than a quarter since last December due to the rising cost of living, new research from Aviva(LSE: AV.L - news) shows.
The average person over 55 has savings of £11,153 in the bank today, down more than £4,000 from £15,262 one year ago.

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Households Raid Savings At Record Rate - Sky News
news.sky.com/story/1176798/households-raid-savings-at-record-rate‎
3 Dec 2013 - Households are pulling money out of their savings accounts at the ....
Savings drop to lowest level in 40 years, Bank of England figures ...
www.telegraph.co.uk › Finance › Personal Finance › Savings‎
2 Dec 2013

And probably more of this... from people who've experienced changed employment circumstances, and also for older people. My savings/house deposit is becoming more valuable, imo, despite really poor interest rate. Not sure if Gilt market has taken all that into account, unless it's factoring in future benefits to economy of a HPC.

Over-55S Spent A Quarter Of Their Savings To Live Last Year.
boomers going broke
Wed, Dec 7, 2011
'People over 55 have had an "annus horribilis" with their bank savings falling by more than a quarter since last December due to the rising cost of living, new research from Aviva(LSE: AV.L - news) shows.
The average person over 55 has savings of £11,153 in the bank today, down more than £4,000 from £15,262 one year ago.

That to me just says people are taking money out of savings accounts due to the low rates and putting their cash elsewhere (BTL) in the hope of a better return.

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The average person over 55 has savings of £11,153 in the bank today, down more than £4,000 from £15,262 one year ago.

Hardly surprising considering all the printing they have been doing.....all gone to push up the stock market and property prices..... :blink:

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That to me just says people are taking money out of savings accounts due to the low rates and putting their cash elsewhere (BTL) in the hope of a better return.

Or simply distress spending to maintain their standard of living.

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That to me just says people are taking money out of savings accounts due to the low rates and putting their cash elsewhere (BTL) in the hope of a better return.

Possibly so, and have read a few stories in newspapers of savers, not satified with the saving rates, deciding to chase yield in riskier investments. Interest rates are low because of all the high risk out there in the market, imo.

We'll see if their investments into retail bonds or BTLs (some choosing to pay very high prices, on their view it only keeps going up in value) stand up next year or so. If there is a weakening in the value of their investments, or other costs which come with landlording BTL (including arrears), they'll be left a lot worse off, and low interest rate savers much better positioned.

Hardly surprising considering all the printing they have been doing.....all gone to push up the stock market and property prices..... :blink:

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Well, we have wage deflation in the west since about 2000 - what do you expect?

That's the reason the government push debt and rising houses price, to try and mask what is going on rather than attempt to tackle the root problem of wage deflation.

Then again, I believe the only way to tackle the problem is by letting deflation rip - lower asset prices primarily. the problem is that the main voting block won't like this much.

Pushing up asset prices and debt against a backdrop of falling real wages is really asking for trouble, but as long as the trouble doesn't happen on my watch or I am alright jack it doesn't matter.

They [bankers & politicians] almost lost control of the ship in 2008 and those props are still in place. Building the debt bubble on top of it is suicidal, but that is the path they have chosen.

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Yield on the 10-year gilt has jumped from 2.86% to 2.92% on the news.

They'll have to come out with more forward guidance speeches to dampen expectations. 7.4% seems quite a bit diff to the market expectations Listed Iin yhe thread.

Edited by Ash4781

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They already have it's called 'sustained growth' but they have decided (after the mistake of setting the 7% figure) not to define what is 'sustained' or what the level of 'growth' should be.

Which exposes the weaknesses in the policy of forward guidance ?

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Which exposes the weaknesses in the policy of forward guidance ?

Do you really believe anybody takes a blind bit of notice of what Carney says? The only people who care are the banksters and corporate kleptocrats and they'll have had an inside steer from the Bank this month already.

Forward guidance pffftt ... it's a complete charade.

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Do you really believe anybody takes a blind bit of notice of what Carney says? The only people who care are the banksters and corporate kleptocrats and they'll have had an inside steer from the Bank this month already.

Forward guidance pffftt ... it's a complete charade.

Not really and its very early for credibility to be on the line. Some people must be making alot of cash from this fwd guidance policy.

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