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Wages Rise, Unemployment falls again....
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://www.bbc.co.uk/news/business-33162403UK unemployment has fallen again while wage growth has hit a near four-year high, official figures have shown.
The number of people out of work between February and April fell by 43,000 to 1.81 million, the Office for National Statistics said.
The jobless rate held steady at 5.5%, the lowest level since August 2008.
Meanwhile wage rises grew at their fastest rate since August 2011, rising 2.7%, both including and excluding bonuses.
The total number of people now in work is 31.05 million people, which is 114,000 more than in the previous three month period
With CPI at just 0.1%, wages are now rising 2.6% above inflation per year, which is not bad actually by historical terms.
:beer:
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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Great news Hamish - thanks for sharing.
With CPI so low, at least that will stave off any pressure to raise interest rates for months to come.
I realistically cant see the BOE raising interest rates this year.0 -
...and yet the anti-austerity fans like the SNP are still convinced Mr Osborne is making a grave mistake.0
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Great news Hamish - thanks for sharing.
With CPI so low, at least that will stave off any pressure to raise interest rates for months to come.
I realistically cant see the BOE raising interest rates this year.
Why don't you want interest rates to rise? Surely that would be the sign of a healthy economy?0 -
interest rates to rise? Surely that would be the sign of a healthy economy?
Well technically that would be the sign of an overheating economy....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Well technically that would be the sign of an overheating economy....
Raising rates back to something approaching normal signifies an overheating economy?0 -
Why don't you want interest rates to rise? Surely that would be the sign of a healthy economy?
He might be in a similar position as me, I'm about £30k better off per annum from when the base rate was 5.5%. I'm not sure what I want to happen TBH, on the one hand I am much better off with lower rates, and on the other it would be nice to see the economy fully recover, and I can't deny that I have had a very good run, which has lasted over twice as long as the 3 years that I initially hoped for. But what I want doesn't affect what will actually happen, we are all passively watching, rather than influencing.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
Raising rates back to something approaching normal signifies an overheating economy?
There is no "normal" for rates.
Rates are wherever they are appropriate to be for the economy at that point in time.
The key thing is the movement in rates (or other tools to control liquidity), if an economy* risks overheating you need to tighten monetary policy, if it's flagging you need to loosen it.**
* To be technical, we're misusing the word economy as a very rough proxy for inflation caused by excess liquidity
**Interest rates are only one tool, even at the zero bound other tools are available.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Raising rates back to something approaching normal signifies an overheating economy?
I think we need to work on your definition of a "normal rate".This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
chucknorris wrote: »He might be in a similar position as me, I'm about £30k better off per annum from when the base rate was 5.5%. I'm not sure what I want to happen TBH, on the one hand I am much better off with lower rates, and on the other it would be nice to see the economy fully recover, and I can't deny that I have had a very good run, which has lasted over twice as long as the 3 years that I initially hoped for. But what I want doesn't affect what will actually happen, we are all passively watching, rather than influencing.
Nothing personal, but this typifies the moral hazard our economic policies advocate. People complain that the banks were too big to fail, but actually, it's the private sector indebted who are.
As a mortgage holder, I'm one of them btw, but I can at least admit it is what it is.0
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