Commenting about the latest labour market figures, published this week via the Office for National Statistics, Ian Stewart, Chief Economist at Deloitte, the company advisory firm, said:
“Job creation is a large UK success story. Despite Brexit uncertainties and slower growth, england will continue to generate ever lower unemployment and progressively more jobs.
“But the current recession, and it is aftermath, has weakened the link between unemployment and wages. Up to now this higher level of tightness during the jobs market is pushing wages higher. Instead earnings growth has flat lined within the last few two years.”
On Inflation Stewart says: ?”It is pretty remarkable that, with inflation near 3.0% and unemployment at the cheapest level in over Forty years, simply seeing much wage inflation.
“That means yet another squeeze on consumers – but it also means higher inflation is not feeding back into the economy through wage growth.
“The scene looks searching for an easing of inflation pressures through 2018.”