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Coronavirus: Crisis to unleash a deep recession for jobs under OBR report

Sky’s Ed Conway says the OBR’s crystal ball foresees a hugely damaging picture for jobs, whatever the scenario.

This might sound improbable but just over a decade ago many people were bemoaning the fact that economics had become so boring.

Inflation was low, growth was stable and for a period the fashionable thing to say was that the technocrats had triumphed: the era of boom and bust was over.

But, as the Office for Budget Responsibility has pointed out, we have now had two “once-in-a-lifetime shocks” in the past decade or so. There are plenty of differences between the financial crisis and what we’re going through now – some good, some bad.

But the overarching lesson from 2008 and what followed is that early expectations for a quick bounce-back to normality are often wildly overoptimistic.

Back then a lot of people expected a v-shaped recovery, but it never materialised. Indeed, it took about seven years for gross domestic product per head to get back to where it was before that crisis hit.