How can we explain this growthless jobs recovery, asks Thomas Molloy
WE'RE all used to a jobless recovery – a period of economic expansion which has no effect on employment because companies are too afraid to take on people. The latest evidence from the Central Statistics Office is that we are currently experiencing the opposite – a period of sustained job creation without economic growth.
This is probably good news – what use is growth without jobs? But it is also very unusual, and something of a mystery.
The latest figures from the CSO, published yesterday morning, show that gross domestic product contracted 1.2pc in the 12 months to the end of June, a period when the number of people in employment rose for the first time in six years and unemployment fell every single month.