This was met with commentary heralding the "end of the jobs bounce back", with many suggesting that the tentative period of employment being "on the up" was over, and we now face bleak times.
Is this really the case? Was there ever a so called 'bounce back'? Or are these peaks and troughs simply symptomatic of the 'corrugated bottom' that our economy is bumping along for now, and for the foreseeable future?
Economic instability inevitably breeds uncertainty, wavering confidence and with it, increased caution for buying in general. The news headlines don't do much to restore our faith in financial recovery. One minute, large supermarkets are boasting about their profits - which commentators put down to seasonal highs - and the next, they are in the red, blaming abnormal weather conditions and reduced disposable income. Whatever the reasons, the 'boomerang effect' with business growth and prosperity is bred from the overwhelming economic inertia we find ourselves experiencing in 2013.
A recent example of a headline that impacts both consumer and business confidence was the announcement this month that The Co-operative, heralded as one of the UK's most resilient and trusted banks, has recently suffered capital shortfalls and significant financial difficulties. Buyers, suppliers, customers, and business leaders, even those with no association with The Co-operative, will be affected by these headlines, perhaps without even realising.
When Britons hear about a high street stalwart facing a potentially bleak financial future, it doesn't make them feel much more positive about their own economic prospects, or indeed those of their businesses or workplace.
Decisions to make purchases, both large and small, decisions to hire and decisions to invest are often put on hold or written off altogether due to extreme caution and sometimes even fear. While this is understandable, it ultimately prevents companies taking on new staff and building enough capacity to grow.
Needless to say, the impact of economic inertia is wide and varied; business caution affects recruitment decisions and recruitment decisions affect society as a whole. The ONS figures show, of those unemployed, one in five have been out of work for two years. This is a worrying statistic, as the impact of being out of work for longer periods can be debilitating for some job seekers.
Damaged confidence is perhaps the most obvious consequence. Can you imagine how many set backs job seekers face? The CIPD recently found there are 45 applicants for every one low-skilled job. Competition is stiff and the chances of securing such a role are slim. Not only this, but also many applicants won't receive any feedback as to why they didn't get the job and therefore not understand how they can tailor or improve their approach for the future. Although it certainly isn't the case with all jobseekers, research shows that periods of long term unemployment is often followed by periods of poverty, ill health and crime.
These factors do give serious cause for concern when it comes to the long-term future of our economy, and indeed society as a whole. It's critical that rather than dwelling on the widespread consequences of unemployment rising and general economic gloom, businesses should focus on adapting to a new kind of normality.
The 'corrugated bottom' of our economy means: figures will rise and fall, there will certainly be no trends when it comes to employment figures and ultimately those who remain steadfast and focused on sustainability, or even achievable growth, will weather the recessionary storm. Perhaps even create valuable jobs in the future.
Gary Browning is CEO at HR services group Penna
