The Human Cost of Job Losses

We are all bracing ourselves for the result of the Comprehensive Spending Review when we will know the scale of the cuts e are facing.  Workers in the public sector will, initially, be in the firing line.  But those in the private sector should be equally concerned.  For every job lost locally, there will be one person less spending in local shops, using buses and taxis, and using local leisure facilities.  And with local government cuts, the amount spent in the local economy falls. 

All this results in more job losses and a vicious cycle gather pace.  But that is just the financial fall-out.  The human cost is so much greater.

Michael Moore, in his depressing, yet excellent book Downsize This! refers to research carried out by economists at the University of Utah, that for every 1% rise in the number unemployed, homicides increase by 6.7%, violent crime by 3.4%, property crime 2.4%, and deaths by heart disease and strokes rise by 5.6% and 3.1%, respectively.