Olympic Job Creation Eases Unemployment
Unemployment in the U.K. fell by 65,000 to 2.6 million since May amid "indications that the drop may have been driven in part by the creation of jobs linked to the Olympics," according to Brian Groom of the FINANCIAL TIMES. It was the fourth straight month in which unemployment has fallen -- a phenomenon that has "puzzled analysts when the economy is supposedly in a double-dip recession." However, it is a "lagging indicator and many believe it will eventually start rising again" (FINANCIAL TIMES, 7/18). In London, Heather Stewart reported that the Office for National Statistics said that the surge of 61,000 more people who have found employment in London over the last three months has "an Olympics link." Consultant IHS Global Insight Chief Economist Howard Archer said, "The boost to employment from the Olympics may have helped to contain unemployment" (GUARDIAN, 7/18). Also in London, Sam Fleming reported that the Olympic Games "have been driving job creation." However, "the numbers presented a conundrum," as robust labor market figures "are hard to reconcile with an economy that has failed to grow for 18 months" (LONDON TIMES, 7/18).