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Ian Brinkley
Economic Advisor
Ian Brinkley

The latest labour market analysis

Authors: Ian Brinkley

18 May 2016

Growth has resumed in the labour market with an increase of 44,000 comparing Jan-Mar 2016 with the previous three months, but it is much more subdued than in 2015.

And for the first time in many quarters, there was no rise in permanent jobs. All of the increase was for the self-employed and temporary employee workers.

With weak hiring it is the young, as usual, who loose out. Overall unemployment remained unchanged at 5.1 per cent, but unemployment among 18 to 24 year olds went up from 12 per cent to 12.2 per cent.

It is possible but unlikely that the slowing growth in the labour market is directly linked to the uncertainty among employers some think has been generated by the Brexit debate.

Worsening world trade conditions pushing some export based sectors such as manufacturing into recession and increased costs from the introduction of the National Living Wage are more immediate explanations for employers being more cautious about new hires.