Yael Selfin, Chief Economist at KPMG UK comments on today’s ONS labour market figures.
Commenting on today’s ONS labour market figures, which show that the UK labour market tightened further in the second quarter of this year, Yael Selfin, Chief Economist at KPMG UK, said:
“Unemployment is now below the level the Bank of England considers sustainable. The fall in net migration since the EU referendum has already put some pressure on the labour market as it heats up and this will intensify as the UK leaves the EU. But it is heartening to see more people at working age joining the labour force, with inactivity levels falling particularly in the North West.
“The continued fall in real earnings will put further pressure on households and risk upsetting the resilience of the UK economy. However, with the labour market displaying record tightness, the Bank of England cannot ignore the upside inflation risks and should pursue a gradual normalisation plan for rates next year.”
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