REC still expecting growth for 2011, despite Q4 GDP shock

The UK economy should still expand during 2011 despite the shock gross domestic product figures for the final quarter of 2010, according to one industry body.

Earlier this week, the Office for National Statistics (ONS) revealed that the economy contracted by 0.5 per cent between October and December last year.

Chancellor George Osborne echoed the comments of the ONS, claiming that the severe weather experienced in November and December was the cause of this surprise fall in productivity.

Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), said the economy is still predicted to grow by just over two per cent during 2011.

“While this won’t drive huge job creation, it will be enough for the jobs market to remain positive,” he stated.

“However, this does clearly show that the government must do more to stimulate growth and job creation.”

Mr Green said that the one million young people not in work or education is “a critical issue” that must be addressed quickly to avoid a lost generation.

Links:

Recruitment and Employment Confederation