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.
About Dan Martin
Dan Martin has 10 years experience as a journalist writing about entrepreneurs and the issues that affect them.
After three years working as a researcher for Sky News, he joined BusinessEurope.com as a reporter. This was followed by two years working as news editor for Startups.co.uk during which time Dan also contributed to Growing Business magazine. In 2006, he joined Sift Media as business editor before being promoted to editor of BusinessZone.co.uk. He also has responsibility for UK Business Forums, the UK’s most active online forums for small business entrepreneurs. In addition, Dan founded The Pitch, BusinessZone.co.uk's nationwide competition for small business owners. He host the grand finals in 2009 and 2010 in front of an audience of 300.
As well as interviewing many entrepreneurs, Dan has written content for leading business organisations such as the Department for Business, Enterprise and Regulatory Reform, British Chambers of Commerce, Forum of Private Business, Investors in People and Business Link for London. Among the publications that have quoted Dan are The Times, Mail On Sunday, Financial Times, Personnel Today and Bristol Evening Post. His articles have also been published by publications including eGov Monitor, Virgin Express in-flight magazine and Personal Success.
Dan regularly speaks at events about small business and social media issues. Among the events he has presented at are the National Federation of Enterprise Agencies' annual conference, Learning Technologies, Publishing Expo and World of Learning. He has also chaired high profile debates featuring senior representatives from Business Link and the Federation of Small Businesses and Dragons' Den judge James Caan.
Dan was named the 10th most influential political blogger on Twitter by the Independent and won the public award for best B2B tweeter at the Golden Twits 2010. He also organised the Bristol Twestival, part of a global Twitter driven charity initiative, in February 2009 and March 2010. Volunteers from 175 cities around the world organised events using the social network. In total, $350,000 was raised for charity: water in 2009 and $500,000 for Concern in 2010. In Bristol, £1,500 and £5,600 was raised.