Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Britain Approaching Full Employment, Says Bank Governor

by March 13, 2024
March 13, 2024
Britain Approaching Full Employment, Says Bank Governor

The governor of the Bank of England has acknowledged the challenges faced by policymakers due to unreliable data, expressing a desire for more accurate figures on the unemployment rate.

Andrew Bailey, speaking to an audience in Italy, noted that the UK jobs market appears to be operating close to full employment despite rising borrowing costs, which traditionally tend to elevate the jobless rate in efforts to curb inflation.

“I wish we had a more precise understanding of our unemployment figure in the UK…but it appears that we are at, or near, full employment,” Bailey remarked.

His remarks coincide with the Office for National Statistics reporting a rise in the unemployment rate from 3.8 per cent to 3.9 per cent in January, contrary to forecasts of no change, yet still hovering around historic lows.

The ONS is currently overhauling its labour market survey, addressing declining response rates since the pandemic. This includes reverting to face-to-face interviews and expanding sample sizes to enhance the accuracy of key statistics such as unemployment, employment, and wage growth.

As a result, the Bank has turned to alternative labour market surveys, focusing on indicators like companies’ demand for labour and wage expectations.

Despite expectations that higher interest rates would dampen hiring and lead to layoffs, Bailey noted an “unusual” trend of falling inflation without significant increases in unemployment, observed not only in the UK but also in the US and eurozone.

“This is cautiously positive news. The combination of disinflation with full employment is atypical in our recent history,” Bailey remarked.

Official figures also revealed a decline in wage growth, excluding bonuses, to 6.1 per cent in the three months to January, the lowest since the summer of 2022. The Bank’s monetary policy committee indicated the need for further evidence of slowing earnings growth before considering interest rate cuts later this year.

Bailey emphasized that while the labour market remains robust, “monetary policy is playing its part” in addressing inflation. However, he underscored the necessity for a deeper understanding of the impact of high interest rates on employment and workers.

“Monetary policy is fulfilling its role,” Bailey affirmed. “We cannot expect models to predict events like wars or pandemics accurately. While economics provide frameworks, precise forecasts are elusive. Therefore, it’s imperative to enhance our understanding and modelling of labour markets and investment, especially since the financial crisis.”

Read more:
Britain Approaching Full Employment, Says Bank Governor

0
FacebookTwitterGoogle +Pinterest
previous post
Business Planning: A Royal Pain or the Secret to Your Success?
next post
UK recession appears to be over as economy expands in January

You may also like

Protecting Your Business Against Phishing Attacks

April 19, 2024

Dyslexic founder secures Branson’s backing with ‘Elevator of...

February 19, 2025

Government extends ‘generation buy’ mortgage guarantee

December 20, 2022

Cash-strapped Britons turn away from online shopping

October 27, 2023

Why Outsourced Accounting Services Are the Future of...

May 26, 2025

Jeremy Hunt Proposes Pension Fund Overhaul to Boost...

March 4, 2024

Revenge travel: how automated marketing can help build...

April 5, 2024

Perception is your reality

September 3, 2024

Maximising Workplace Motivation with Creative Breaks and Digital...

October 10, 2024

Recession uncertainty tames UK business confidence upward movement

June 2, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved