Originally posted by @wolfgang59 Magie was right!
She said she would get unemployment down.
Now at its lowest level since 1975.
The figures also show a rise in productivity, but a
slowdown in wage growth. I wonder who profits by that?
The CBI said the size of the UK workforce was shrinking at
the same time as vacancies for ...[text shortened]... labour were growing.
Damn! Looks like UK will need some immigrants .....................
The economic theory says that there should be a strong correlation between wage growth and unemployment, which makes sense. If there are jobs with nobody to fill them, employers have to improve their wage offer to "fight" for workers. The UK has certainly tested the strength of this correlation, although the labour market has not been this tight for a long enough period of time to confirm whether it has had an effect on wages or not. Wages have shown some improvement this year at least.
Productivity remains key to improving growth and living standards. Britain has had ghastly productivity growth since the crisis. I would say that this is because low interest rates keep "zombie firms" in business, lowering productivity. Higher inflation because of low interest rates (Mark Carney's August 2016 rate cut) exacerbated a squeeze on the British consumer last year that is now ended. The economy is not in crisis anymore and hasn't been for a number of years so why do we still have crisis-era interest rates? It makes no sense and I wish that the BoE would stop dithering with the rate rises already.