United Kingdom: Labor market stays robust at outset of 2023
According to the ONS, in October–December the unemployment rate registered 3.7%, while the redundancy rate rose but remained below pre-pandemic levels. Employment continued to increase in January, and job vacancies were at historically high levels in November–January despite easing.
These figures show that the labor market is still in good shape, which should support private spending in the face of double-digit inflation and declining real wages. Looking ahead, the labor market is set to lose steam as economic momentum softens, although the rise in the unemployment rate will be limited.