UK 'turning into old-style third world county'
The so-called 'UK paradox’' of job rates rising while economic growth remains weak is less a mystery than a deeply disturbing trend, an employement expert has claimed.
According to a report report from the OECD, whilst "real GDP in the UK is still 3.1% below its value in the first quarter of 2008...employment is back where it started". This situation, where employment levels have been rising, ven though GDP has been falling, has been described as the 'UK paradox'.
Commenting during a meeting, Robin Chater, secretary-general of the Federation of European Employers, said: "If we take a look at UK capital replacement figures in national accounts statistics we can see that it has fallen more than any European country since 2005.
"The UK is turning into an old-style third world country with low pay growth for most workers below managerial level, widening pay differentials and poor levels of capital investment. This has been partly encouraged by the influx of workers from eastern Europe since 2004 - who have been willing to perform many functions at low wage rates that would have otherwise been automated.
"It's ironic that although the city of London financial markets represent Europe's largest foreign direct investor in the rest of the world the city largely neglects its home market. This is a second paradox with massive amounts of money flowing in and out of the exchanges in London, whilst all around it is the waste land of the British economy - starving for capital investments.
"Of course, it s not all the fault of the city - as much of the blame must be placed on companies operating in the UK for taking a short-term view and continuing to use machinery/equipment/systems that should have been replaced long ago.