After yesterday's sudden fall of consumer inflation data on labor market looked less dramatic, nevertheless, of interest to the British labor market. Firstly, the reduction in applications for unemployment benefits were modest. Over the past six months the number fell in the total amount to 16.000. Compare with the first six months of last year, when even drop in a month was more.In a broader perspective, the study of unemployment may have been more encouraging. The unemployment rate for December-February fell 7.8% to 8.0%. For the age group 16-24 the level rose to 20.4%, the growth of youth unemployment - a problem not only British but also relevant for many developed and developing markets. The labor market situation is now quite predictable, given the nature of his conduct during a recession. Employment has fallen by only 2% during the recession of 2008-09, compared to 7% during the recessions in the early 90's and 80's. All this, despite the fact that the peak fall in production in 2008-09 was twice that in the early 90's.
In other words, there is still a fair amount of slack in the current labor market conditions, which can be seen in a constrained income and reduced productivity (a fall in productivity per hour was 0.7% q / q in the service sector). Add to this the fact that production in the first quarter of encounters with the complexities of compensation decline in the fourth quarter, because there is little reason to expect that the British labor market to let off steam in the coming months.
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