Last week we had two conflicting pieces of UK economic data. On the one hand, the economy shrunk (again); on the other, unemployment fell.

Now this is a real conundrum, and at first glance almost appears a paradox. How can the UK be employing more people when the economy is flat-lining, or even in reverse?

This is really not my area of expertise, but my take on this is that employer’s have really done their bit (and then some) during this downturn. By trimming, and controlling, their employment costs, many redundancies have been avoided.

And I don’t think that either the last Labour, or current Coalition, Government have given employers the credit they really deserve here.

Let’s imagine that employers had not taken such actions. Many more people would have hit the unemployment line. These people would no longer be contributing to the taxation system, and also be claiming benefits from the same source. It therefore follows that every new unemployed person is effectively a ‘double whammy’ to the UK economy.

By keeping people in work, and thus both paying taxes and not claiming benefits, employers will have made a massive difference to the UK economy since the downturn started, and possibly more so than many Government-led initiatives.

It would be nice to see some recognition on this point from the policy makers, but I doubt any will be forthcoming in the near future. But at least it shows that HR and Finance professionals can make a real difference in very difficult times.

For those that would like a (much) more more informed view on the UK employment situation, you could do worse than attend next week’s Jelf Employment Seminar in London. We are lucky to have John Philpott, a real expert on this area, as one of our guest speakers (along with the usual Employment Law and Employee Benefits slots). I have had a few cancellations today, so there are a few places available if you would like to attend.

For more details, please see the attached link: http://goo.gl/A86vc

Best regards

Steve