“The economy is back at its pre-crisis size, even accounting for a larger population. The jobless rate is at its lowest in a decade, and the employment rate is at a record high.” – according to telegraph.co.uk (full article)
This is great news for employment consultants and a real sign of growth for our clients. As we have seen our busiest month this February 2016, it still leaves job seekers still seeking, but why?
It has long been thought that as the number of people looking for work falls, wages will have to rise, and in turn, so will prices. This process is the erosion of “spare capacity”, ensuring that all those who want to work do so, and leaving as few resources unemployed as possible.
Forbes believes that the British jobs market has now “largely returned to normality”, we are still set to see a wage increase that effects all areas of all people’s work life and home life.
But how much do we actually know about this?
At the beginning of last year, the Bank of England believed earnings would rise by an average of 3.5% in 2015. In their most recent update, the central bank’s economists recognised that the gains were likely to be below 2% (read the full telegraph.co.uk article online here).