Commenting on the new labour market figures published today by the ONS, David Kern, Economic Adviser to the British Chambers of Commerce, said:

 

"The new labour market figures published today show that British business is still resilient in spite of the worsening global credit crunch and the serious problems in the UK mortgage market.

 

"The figures show that employment is still rising and unemployment is falling, while wage pressures remain broadly under control. However, there is no room for complacency. The problems in the financial system and in the housing market pose very real threats and it is vitally important that the wealth creating business sector is not harmed by these difficulties.

"In spite of the figures published today, we continue to believe there is a strong case for a modest cut in interest rates to 4.75% in May. Without a cut in interest rates there is a serious risk that confidence will decline with significant implications for the economy."