Chief Economist at KPMG in the UK - Yael Selfin comments on today’s labour market figures.
Yael Selfin, Chief Economist at KPMG in the UK, comments on today’s labour market figures:
“Today’s figures show that the UK labour market continued to tighten in the three months to April despite the uneven performance of the UK economy. Employment reached record level and the proportion of people in work or looking for work remained at its peak since records began.
“The discrepancy between strong employment and more subdued output growth points at disappointing productivity performance so far this year, which may explain the moderation in earnings growth in April. And as the rise in real earnings fell to a mere 0.1%, households are likely to hold back on discretionary spending.
“While a strong labour market provides a ray of hope that businesses are still confident about the future and households’ employment opportunities remain strong, it presents a dilemma for the Bank of England, as domestic price pressures are on the rise despite a spluttering economy.”
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