LONDON (Dow Jones)- Bank of England Monetary Policy Committee member David Blanchflower said Monday forecasters tend to underestimate unemployment in downturns, so estimates that the U.K. jobless rate will hit three million are probably too optimistic.
Speaking to lawmakers on how to tackle the problem of unemployment, Blanchflower - a labor economist - criticized calls Monday from major business lobby group the Confederation of British Industry for the government to avoid further fiscal stimulus in its Budget Report due April 22.
“I would answer that by saying, ‘So what are you going to do about unemployment?’” Blanchflower said.
“People are very fearful, very concerned about losing their jobs and that’s leading through to consumer confidence and spending power,” he said.
-By Natasha Brereton, Dow Jones Newswires, +44-20-7842-9254, natasha.brereton@dowjones.com
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(END) Dow Jones Newswires
March 23, 2009 09:51 ET (13:51 GMT)
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