Employment and borrowing costs
The Tory types who want to blame the UK economy’s faults on the lazy, and the feckless have some explaining to do. The latest figures show that the number of people in employment increased to a record high and the economic inactivity rate decreased by 0.4 percentage points. But those inactive because of long-term sickness increased to a record high, so fixing the NHS would be of huge economic benefit.
But there are also signs that the country has serious problems. The number of vacancies fell by 79,000, as economic uncertainty holds back recruitment, companies don’t want to risk it and for those in work the result is that pay rose by 7.2%.
This means the pressure on the Bank of England will continue. Higher wages, companies passing on the huge rise on their costs, mean that inflation will remain a major issue and the Bank has only one tool to fight it, higher interest rates.
Which will in turn hurt growth further.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media