Economy

Unemployment in the UK has hit a six year low in the last three months. The ONS (Office for National Statistics) has reported that the amount of people out of work has fallen by to 6.4% in the last quarter. This is the lowest level since 2008 and it has gone done from 6.5% in May.The actual figure of people out of work decreased by 132,000 to 2.08 million, however average wages rose at the slowest rate since records began in 2001.The Office for National statistics suggested that the slow wage increase was affected by a large number of employees actually deferring bonus payments in the hope of the top rate of tax being cut.This deferment is thought to have affected the actual real rate of increase, which would have been higher if it was not for the bonus deferring.Low salary inflation, the rate at which the real value of a salary increases is a growing concern for top financial decision makers in the Bank of England, it could ultimately have an effect on the timing of when to raise in the interest rate.The Bank of England has now reduced its forecast by more than half, saying the average salary increase would be around 1.25% for 2014.The slow salary growth is likely to prevent an increase in interest rates this year, mainly due to the average person being made to pay more for their mortgage and subsequent knock on effects to the cost of products and services.The slow increase also suggests that the economy is still fragile; the figures should be used seen as a warning sign that the economic recovery still has a long way to go.The unemployment is still expected to fall further as we move into the second half of the year. It is also very probable that the unemployment rate will fall below 6%.If you found this news article insightful you can find more economy posts on our blog.

Leading UK firms BDO has suggested that its job index for July which measures hiring plans for the coming three months was at the highest level since 1998.The report has seen a large increase in firms looking to hire new staff. An increase in the rate of new jobs that are being created is expected to last for the rest of the year.Another index report from BDO which measures businesses expectations over the next 6 months was at the highest level for more than one year. This is testament to the UK`s economic growth and increase in consumer confidence.The increased optimism will only have a positive real outcome on the UK economy and employment figures, which is great news for Britain as a whole.However increase employment can lead to a shortage of skilled workers and it is thought Europe will help fill gaps in the employment market.If you enjoyed this business and economy article you can read more on our informative business blog.

The Chancellor of the Exchequer, George Osborne, is due to unveil a plan which could see the British government exploring the role that digital currencies such as Bitcoin could play in the existing financial system and whether they need to be regulated. The measures included in the plan are intended to make Britain the global centre of financial innovation.The growing popularity of Bitcoin has sounded alarm bells in the regulated financial system and as it is not controlled by a central bank it is therefore much more difficult to regulate.A Bitcoin is a new type of money, it is completely virtual and can be used to buy products and services just like an online version of cash but is currently limited by the small number of shops and retailers that will accept it.

Currently there are 3 main ways to get a Bitcoin:

- You can buy Bitcoins using real money. The current value of one Bitcoin is approximately £500.- You can sell something and receive payment in Bitcoins- Or they can be created using a computer, this is called “mining”Bitcoins have become popular due to the fact that some people like the fact that Bitcoin is not controlled by the government or banks, which in turn means there are no taxes or bank fees to pay, at least for now.People can also spend their Bitcoins anonymously and although the transactions are recorded publicly, unless someone knew your Account number it would be almost impossible to check on your transactions.Every transaction is recorded publicly so it's very difficult to copy Bitcoins or make fake ones or even spend ones you don't own.It is possible to lose your Bitcoin virtual “wallet” or delete your Bitcoins from your phone or PC and lose them forever. This is one of the main drawbacks of the current system and there have also been thefts from websites that let you store your Bitcoins remotely.At the moment the value of Bitcoins goes up and down a lot, so it's impossible to say whether it's safe to turn your 'real' money into Bitcoins.Speaking at London's Canary Wharf , the Chancellor said that it is "only by harnessing innovations in finance, alongside our existing world class knowledge and skills in financial services, that we'll ensure Britain's financial sector continues to meet the diverse needs of businesses and consumers here and around the globe".He also announced the government is to investigate the potential for virtual and digital currencies such as Bitcoin to encourage innovation in the UK's financial sector, while also examining their potential risks.More than 60,000 online retailers now accept virtual currencies worldwide and the growing popularity has seen backers of the currencies push for greater mainstream adoption. However, their use has also been linked to illegal activity online.BBC technology correspondent Rory Cellan-Jones said: "Enthusiasts say it is the future of money, detractors claim that it is extremely volatile and is used mainly by drug dealers and money launderers."Now the government says it will examine whether this and other virtual currencies should be regulated, how they could help stimulate innovation - and their potential risks."

The latest Markit UK Construction PMI report has stated that in July 2014, the new UK house building grew at its fastest rate for nearly 11 years, not since November 2003 has home building seen more activity, driven by the demand for new new projects and the growing demand of the first time buyers.Although the house building market is one part of the PMI index and the overall index was down slightly from 62.4 to 62.6 in June, growth in the market is indicated by anything over 50.Tim Moore, the senior economist at Markit, stated that "July's figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn,"The growth in the construction industry has been positive for the past 15 months and has given rise to a reported fastest rate of labour hiring since April 1997 when the survey first began.It is expected that this period of growth will have the usual knock-on effect in the home and DIY markets but this will not be reflected until later in the year.With the markets anticipating an interest rate rise sooner rather than later Ray Boulger, of the mortgage brokers John Charcol, is expecting and average 2014 house price rise of around 8%. Which is based on the Halifax and Nationwide indexes.This rise reflects a similar increase seen towards the end of 2013, and which caused a surprise due to the slow growth experienced at the start of 2013.This view is rejected by the housing market commentator Henry Pryor who predicts that although house prices will rise, the scale of the rise will be only 5% nationally in 2014, but 8% within the M25 motorway. The London market is expected remain buoyant with demand still outstripping supply.If you enjoyed this blog you can read more on our business and economy blog section.

Boris Johnson, mayor of London, has said that Britain could be better of if without the EU (European Union). The mayor has made the comments to coincide with a publication of a new report which is expected to say that London`s economy would not really suffer is they did decide to leave the EU.Boris who is scheduled to make a speech regarding the report on Wednesday is expect to discuss an 8 point outline on how the EU should reform. The plan he has come up with is expected to far exceed any demands being put forward by the prime minister David Cameron, who is also trying to reform the EU. David Cameron is holding a meeting with EU leaders at the summit in Brussels, and is expected to discuss his idea of reform. Boris Johnson is pushing a more rigorous reform plan with more pressures which the EU leaders will not be happy about.This is widely thought to be a political point scorer with Boris expected to stand for a MP in 2015 with a bid for the Conservative leadership in tow; if David Cameron fails to win the general election.If you found this news article interesting, you can find more in our business and economy blog.

European home owners are now worrying about soaring energy bills a new survey has explained. With lack of security over supplies and increased localised conflict, Europeans are now starting to think about the consequences and what they can do to help combat the increasing costs.Many home owners are now looking to maximise the energy efficiency of their houses, in order to combat the rising cost of energy.Over 77% of European home owners surveyed explained that they are looking to changing their home in order to meet better regulations on energy efficiency. The driving force behind this is the rising cost of energy and uncertainty of stable supply from Russia.Read more business and economy news in our business blog.

Europe's inflation has fallen to a new record low since the beginning of the financial crisis. The European Central Bank has said this is now becoming very dangerous for the economies of Europe.Inflation rose only by 0.4% in July, down from 0.5% in June. At this low rate there is a very real risk of deflation. The European Central Banks target is 2%. If it stays lower than 1% there is a chance prices could begin to spiral.A few EU countries have also felt a deflation and Spain`s latest figures have shown a fall in prices over the last 12 months. Other countries such as Greece and Portugal have had inflation well below Zero.It is widely expected that the European Commission Bank will begin on a programme of quantative easing, with them buying financial assets from governments such as debt and bonds, with the aim to help increase inflation.These figures show how weak the Eurozone economy is and the UK is very lucky to not be part of the since currency at present, as the UK continues to grow and thrive.This blog was brought to you by Your Virtual Office London, if you enjoyed this post, you can read more interesting and insightful articles on our business and economy blog.

it is reported that the US economy grew at a high rate of 4% during the months of April to June. The United States Department of Commerce have reported that the growth during this second quarter now has reversed the contraction seen at the start of the first period in the current year.Now growth is forthcoming the Federal Reserve would start to ease the economic stimulus, it is expected that the Federal Reserve will reduce it`s monthly bond purchased from $35 billion to $25 billion.However the growth is now leading to inflation fears, the US labour market is a lot weaker than predicted and this could lead to higher inflation when combined with low interest rates, which are suggested to remain low until mid 2015. Low inflation rates could increase inflation, inflation increased by 1.9% in the first quarter of 2014, it is higher than the 1.4% target.If you enjoyed this business blog post, you may like to know there are more interesting and informative articles in our business blog.Your Virtual Office is a leading virtual office provider in London, if you would like to speak to us about our products please get in contact with us here.

It is now the second time Argentine has defaulted on its debt, this will be the second time in 13 years. It was hoped that discussions being held in New Your with a group of bond holders would be successful however it has ended in failure.The bond holders we requesting a full pay-out of the $1.3 billion on the bonds they hold. Argentina stated they ant afford to purchase the bonds back and suggested the bond holders were using the debt crisis to cash in and make a profit out of them.The last time Argentina defaulted was in 2001, a US judge has given a deadline of 04.00 GMT for a deal to be agreed. The Argentine Minister has said that the Bond Holders rejected their latest offer.The latest default is not expected to have the same effect on the economy as it did in 2001. In the 2001 default many people were protesting and dozens were killed, authorities froze many savers accounts in order to stop a run on the banks.If you found this economy blog interesting you can read more insightful articles in our economy and business blog sections

The United Kingdom should be prepared to pay the economic price for Russia`s sanctions, Philip Hammond has warned.He has suggested all of Europe will feel the after effects of large financial sanctions on Russia. Philip Hammond suggests that the UK will feel from the sanctions will be no worse than other EU member states and that it is essential for the sanctions in order to curb Russian aggression.Full details regarding the EU sanctions on Russia will be announced on Wednesday. It is thought the latest sanctions will target Russian oligarchs with a new round of asset freezes and even possible travel bans.The EU is thought to face increased oil and gas prices due to suspected sanctions on the oil sector. Further sanctions are also going to be aimed at defence equipment and sensitive technologies.

Are the sanctions working?

The idea of sanctions is to apply pressure on the Russian banks and top businesses owners. These people will feel the pressure of sanctions with many billions of dollars being lost. The central bank in Russia is having to spend many billions of dollars in order to prop up the rouble.The sanctions are designed to make Russia understand that they cant carry on supporting the Rebels. The sanctions will hurt the UK and Europe but they will hurt Russia far more.The big economies of the EU will share the pain from the sanctions but it will be worth it, taking a stand to the Russian aggression in Ukraine will benefit the civilised world and we must be prepared to pay the price for doing so.If you found this economy blog interesting you can find more great articles in our business and economy blog.