Analysts at Capital Economics are gloomier, arguing that the jobs recovery has gone into reverse and expecting unemployment to hit 3m in the next few years.
Some fear we may just have to get used to unemployment running higher, if the recession left a permanent scar on the UKs economic capacity.
Decembers headline unemployment figure was 7.9pc. According to the Office for Budget Responsibility, the Governments independent forecaster, this should peak at 8pc this year before dropping to a longer-term average.
However, Mike Dicks, chief economist at Barclays Wealth, recently warned that the structural or underlying level of unemployment has gone up and that unemployment may stick at 8pc as companies get used to fewer staff and slacker growth.
The biggest losers are already emerging - the young, who face a youth unemployment rate of over 20pc, and those in the regions more reliant on the public sector work.
If anyone could said to be winner, it may turn out to be the Bank of England. The failure of pay deals to keep up with inflation is seen as lessening the pressure on the Bank to raise interest rates.
Total earnings, including bonuses, grew just 1.8pc in the three months to December compared to a year earlier, with the average weekly paycheck standing at £456.
When the paltry earnings growth is seen against the backdrop of over-target inflation, now at 4pc, the real-term pay cut is clear. And those in work are the lucky ones.
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