Economic malaise

14/09/11

The UK's fraught economic recovery faces fresh strain after unions threatened strike action over public sector pensions.

One union leader said that industrial action would not just be confined to a single day and would instead take place over several to create more disruption.

Dealing with further strike action is a potential headache for the government, which has come under increasing fire for its refusal to change its public sector pension plans.

This problem is emphasised by an economic climate which can hardly afford to lose working hours to strikes.

Unemployment rose by 80,000 in the three months to July, exceeding 2.5 million, or 7.9%.

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