We have now seen more than two successive quarters of falling unemployment and this is an encouraging sign for the long-term outlook of the economy and of employers’ intentions for future employment growth.
“We have now seen more than two successive quarters of falling unemployment and this is an encouraging sign for the long-term outlook of the economy and of employers’ intentions for future employment growth. Of course, on its own, a figure showing a drop in the number of claimants is not a silver bullet, but taken alongside other positive economic data, such as house prices and stock prices, it is an encouraging trend".
“But there remains a productivity puzzle. Rising employment has yet to filter through to GDP growth, which remains stubbornly flat. One explanation is the reluctance of businesses to make capital investment. We need to see policy makers do as much as they can to give businesses the confidence to start investing again.”
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.