Labor market stays healthy in early 2023
According to the ONS, in November–January the unemployment rate registered 3.7%, while the redundancy rate increase to around pre-pandemic levels. Employment continued to rise in February, and job vacancies were at historically high levels in December–February despite easing.
These figures show that the labor market remains strong, 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.
United Kingdom Wages (ann. var. %) Data
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Wages (ann. var. %) | 2.3 | 3.0 | 3.4 | 1.8 | 5.9 |