UK labour market numbers better than headlines
Despite some downbeat headlines, there are glimmers of hope in the latest labour market numbers.
The number of employees rose in three months to December from the overlapping September-November period. This follows a recovery in vacancies, which increased further in the three months to January – see first chart. The vacancies rise accords with surveys of labour demand, such as the Monster index discussed in a prior post, although National Statistics attributes much of the recent pick-up to temporary hiring associated with the 2011 Census.
Also encouraging was a shift from part- to full-time employment, resulting in a rise in average weekly hours. With employee numbers increasing, aggregate hours worked in the latest three months were the highest since November 2008-January 2009.
Claimant-count unemployment edged higher in January but the three-month moving average has fallen since the autumn, suggesting that the recent increase in the Labour Force Survey measure will prove temporary – second chart.
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