Dated: 18 May 2011
Commenting on the latest labour market statistics, Graeme Leach, Chief Economist at the Institute of Directors, said:
“Today’s figures provide further evidence against a base rate rise. Average earnings growth and unit wage costs (wage growth adjusted for productivity) remain very subdued and show that there is no wage price spiral developing in the wake of the jump in headline inflation. The labour market continues to look soft, with employment up by 118,000 on the previous quarter and unemployment either slightly up or down depending on the measure chosen.
“Private sector employment continues to expand but the reduction in public sector employment is beginning to accelerate and will only get worse over the coming year. The burden of recovery rests entirely on the private sector.”
