The credit crisis is causing a growing number of jobs losses in the UK, with official unemployment figures for last month the worst in 16 years according to a new report. The report also mentioned the alternative ways that people are making money to make ends meet. The main way, according to the survey, is Internet gaming.
Internet gaming has hit the world by storm because of new software that came out in recent years. It is now possible to scan prices globally in seconds and uncover risk-free betting opportunities which provide guaranteed returns of as much as 12% per month. Using software like one called ArbAlarm, ordinary people can now easily profit from this unique method of investment. Aware of this trend, the UK government recently announced through the Treasury that the profits made from sports arbitrage trading will continue to remain free of all tax. This includes income tax and capital gains tax on all profits.
In an interview, former City trader Rajeev Shah, famous author of ‘Sports-Arbitrage - How To Place Riskless Bets & Create Tax-Free Investments’ explained that an arbitrage occurs when different bookmakers’ prices on the same events overlap. In these cases, it is possible to bet on all of the outcomes in that event in such a way as to be guaranteed a total return which is greater than the total outlay. The mathematics of this type of trade are precise & the resultant profits are free of all risk.
The number of people claiming unemployment benefit rose for a fifth month in June, and by 15,500 to 840,100 - the steepest monthly rise since December 1992.
While the number of people employed actually increased by 61,000 over a three-month period, the rate of increase is slowing and as unemployment is considered to be a lagging indicator, economists expect the numbers to grow.
Vicky Redwood, economist at Capital Economics, said: “Expect the labour market to weaken further - we see the unemployment rate rising to 8pc eventually from its current 5.2pc, equating to a rise of 900,000.”
The number of unemployed people increased by 12,000 in the three months to May.
Earnings growth was 3.8pc in the three months to May, down 0.1pc compared with the previous month. The Bank of England will be closely watching wage growth, hoping that it remains contained, despite the sharp rise in inflation.
The risk of the current slowdown escalating into Britain’s first recession in almost 20 years will be determined by how aggressively companies cut staff to shield profits from a painful mix of slowing demand and rising costs.
Companies at the sharp end of the Britain’s housing-led slowdown are already wielding the axe.
Earlier this month troubled housebuilder Barratt announced plans to cut 1,000 of its 6,700-strong workforce while Pendragon, the country’s biggest car dealer, laid off 500 workers.
Howard Archer, chief economist at Global Insight, said: “It is absolutely critical that earnings growth remains muted, if the eventual next move in interest rates is to be down.
“Any sign that higher inflation and elevated inflation expectations are feeding through to push up pay significantly would put major pressure on the Bank of England to lift interest rates - despite the deepening economic slowdown - to try to prevent a damaging wages-price spiral developing.”
He added that rising unemployment coupled with cost-cutting by companies would likely contain wage growth.
Tags: UK News