Taken from Nick’s Blog
(Nick O’Shiel is director and chief executive, Omagh Enterprise Company Ltd)
You can also follow Nick on Twitter @nick_oe
A Tale Of Two Economies
Each week Nick O’ Shiel, Chief Executive, Omagh Enterprise Company, blogs on issues related to Enterprise and Innovation. This week Nick discusses conflicting reports on the economy.
In recent months there have been a number of reports confirming high levels of unemployment and the difficulties facing the economy. During the same period there have also been a number of reports announcing increased company profits and the creation of new jobs and investments aimed at improving the economy.
The contrast and timing of the reports is difficult to understand, as they are in direct conflict with each other. It would appear therefore that we are experiencing two different economies as the same time.
Traditionally, we are more used to and comfortable with economic commentary that is either positive or negative, rather than the conflicting reality of what is currently happening.
There is no doubt jobs are being lost in the economy and people are feeling a greater sense of anxiety and uncertainty about the future. Similarly, there is no doubt that some companies and sectors are growing, gaining new markets and creating jobs.
Within Europe we have the contrasting situation between what is happening in Greece and what is happening in Germany. Greece continues to struggle to provide basic services for its people while Germany pushes ahead with an increasingly strong economy.
It seems difficult to believe that both types of economy are happening in parallel. Yet, it reflects the reality of what appears to be the emergence of two very different groups within society and it is likely to continue.
One group possesses the skills, education and abilities needed to participate in the new growth economy. The other relies on skills tied to the old economy and suffers from its lack of growth and opportunity.
SO, we will continue to receive conflicting reports on the economy, as it appears we have entered a new phase of parallel stagnation and growth.
What do you think? Which economy are you experiencing? Get in touch! If you have any comments contact Nick on 028 8224 9494 or via Twitter @nick_oec.