UK labour market improving slowly
Simon Ward
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The Labour Force Survey employment measure reached a new recovery high in the three months to February, reflecting increased employee numbers despite public sector job cuts – see first chart.
The LFS measure could stabilise or fall back slightly near term, based on recent slippage in vacancies – first chart. The Monster index of online job postings, however, suggests that labour demand is holding up – second chart.
Reflecting the employment rise, LFS unemployment fell to 2.48 million, the lowest since September. The more timely claimant-count measure was down further in the latest three months, though was boosted in March by a change in eligibility for single-parent benefits, resulting in an increase in applications for job-seekers' allowance – third chart.
Total hours worked have outpaced employment as the length of the average work-week has recovered. Hours worked correlate with GDP, suggesting that economic recovery remains on track despite recent weather-related volatility – fourth chart.
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