Encouraging jobs figures but poor economic performance means real wages still falling
Authors: Charles Levy
14 November 2012
Commenting on today’s labour market statistics, Charles Levy, senior economist, at The Work Foundation, said:
“The labour market has again turned in another strong set of numbers. The private sector is continuing to create new jobs, and unemployment is falling. These statistics paint a picture of an economy in recovery, which is difficult to reconcile with the weakness of the economy over the last year. One consequence of this mismatch is the ongoing fall in wages, which will be exacerbated by yesterday’s surprisingly high inflation figure.
“There are some suggestions that the pace of job creation may have slowed in the last couple of months. These numbers will have been boosted by the Olympics, the effects of which may well be temporary. Today’s statistics also underline the fact that we are moving in a very different direction to the rest of the European Union. The health of our neighbours still presents a serious risk to any recovery. While the Chancellor can be encouraged by these headlines, he must focus on how to strengthen growth in the face of these risks as he prepares for next month’s Autumn Statement.”
Notes to editors
1. Charles Levy and Andrew Sissons are available for interviews, briefings and written comment.
2. The Work Foundation will be holding a briefing on the Autumn Statement on 6 December from 6 – 7pm. Speakers include: Will Hutton (chair of the Big Innovation Centre), Mark Littlewood (director general of Institute of Economic Affairs) and Ian Brinkley (director of The Work Foundation). To reserve a place at this event, please email email@example.com.
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3. The Work Foundation aims to be the leading independent, international authority on work and its future, influencing policy and practice for the benefit of society. The Work Foundation is part of Lancaster University – an alliance that enables both organisations to further enhance their impact.
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