The unemployment rate in 2017 in the UK is expected to close at the 11-year-old, but wages, told a Friday 13 January the policy of the Bank of England to grow (BOE) manufacturers that is unlikely.Resolution Foundation think tank, talking to Michael Saunders expect the unemployment rate will remain below 5% resistance BOE forecast, this year to rise sharply.
Unemployment in Britain hit 11-year low of 4.8% in the third quarter of last year, the November inflation rate report indicates that the UK central bank will increase 5.4 percent by the end of 2017.
Weather was based on the assumption that economic growth will slow to about 1.4% United Kingdom 2% last year over the next 12 months.However, Saunders, the rate setting Monetary Policy Committee painted a bright picture for an external member, the UK labor market.
“Economic growth has been stronger than expected recently,” he said. “Rather than the increase in unemployment forecast November inflation report, it seems to me quite possible the unemployment rate will remain below 5% this year.”
Meanwhile, the number of people who work full time are below levels seen before the financial crisis and zero hours contracts have become increasingly common.
“Some people would prefer flexible working structures themselves or trying to reinvent their careers through employment,” he said.”But, that is the average of the less secure forms less well paid, expansion of contingent work may reflect the technological advantages and cost from more emphasis on control and well-paid jobs erosion . ”
He added it was unlikely to translate into additional pressure on inflation, unemployment, the UK economy was likely to record lower-than-expected wage growth.
“These changes [labor market] probably means more pressure down the growth of pay for any particular unemployment rate,” he said. “It is also possible that the uncertainty related pay Brexit will strengthen your dampening factors.”
Saunders was great even though Brexit attributed the steep decline of the pound in the wake of the referendum, inflation was likely to exceed the target of 2% BOE added. However, he acknowledged that inflation could still surprise economists