Page 5: Recovery
A recovery follows a recession. A number of factors may drive recovery, including government intervention in the economy by reducing taxes or increasing spending. It is a time when the economy becomes stronger and consumer and business confidence increases. This creates an upturn in the business cycle. It means the production of more goods and services as consumers start to spend more freely.
Often the recovery phase can be slow at first as consumers and businesses, still smarting from the effects of a downturn, tend to be more cautious in their spending. However, as the recovery develops, unemployment levels start to fall as businesses invest and recruit to meet increasing demand.
Confidence in the market place
It can take an economy a long time to recover from a recession. If there is not enough confidence in the market place, it is possible for an economy to slip back into recession. This has been the case for the UK, which has suffered from a double-dip recession. High consumer spending using credit (borrowed money) was a key factor in the double-dip recession. There for You provides leaflets with financial advice and information regarding sources of additional support and the perils of using credit to finance spending in the recovery phase.
The key to sustaining a recovery is using preventative measures to stop another recession. During 2012, There for You developed a winter fuel grants programme combined with financial assistance and a guide to help with fuel costs. Every enquirer who applied for financial assistance received this guide. In 2013, its support included:
- the launch of an on-line benefits checker
- the There for You Credit Union Service
- money management materials.
There for You aims to continuously improve its service for UNISON members throughout all of the phases of the business cycle. As with any significant business organisation, it has set a range of key performance indicators (KPIs) to ensure continuous improvement of the services it offers.