Soaking Up Unemployment

It seemed that New Labour fooled everyone. In the last 13 years they have DOUBLED the number of civil servants. By having a huge number of civil servants it has made public service a facet of banana republic: there are very few real large businesses running in the UK anymore and Labour has soaked up the labour pools into public service.
 
The cost is that it has hidden the lamentable performance of the UK in terms of real value added employment. Employment issues have been hidden all this time and will about to be revealed.
 
Like the public private partnerships for investment they have long term implications for the stability of the UK: primarily because the pension system will be attractive and protected at a high level: far more than for those people who chose to manage their pensions personnally. They have also meant that the public sector unions have more power than ever and the forthcoming job losses that will be inevitable will create a real problem for the shock to the system.
 
Watch that the Government of the day doesn't cap public service pensions or make them unprotected or indeed Defined Contribution. This would go wholly into a re-assessment of the National Insurance contribution artiface, that currently exists. Self employed people who have contributed NI do not get unemployment benefit and have to keep working until they are 68! Retirement is not going to be an easy thing for the UK elderly population.
 
One good thing that moves on is the fact that London has bought back all the PPP schemes working on the London Underground - which means the local government are no longer in hock. Is this a provision that means the new government may actually start to nationalise the PPP providers to stop them robbing us of a future?
 
One thing we can expect is that new businesses will need to start up and it is likely that these will need European based companies that can employ skilled labour released into the labour market. What ever happens the skills shortage is so bad in technology that we will be resorting to a mediocre resource model.
 
Expect that managing the elderly will be a new industry: a whole new world will exist for businesses that can manage the elderly in their home, protecting them, helping them medically and keeping them interested. Too long have we seen entertainment geared for children: the change will now be skewed for the elderly: expect the Third Age to take off!