Commenting on the labour market figures published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“Unemployment has risen at a much slower pace than expected in the three months to August, confirming our assessment that the recession is ending. However there is no room for complacency, and a sustainable recovery is not guaranteed.
"Although confidence is strengthening, businesses are still facing serious pressures, particularly small and medium sized firms. Lending is still too weak, and many are struggling to retain their skills base.
“The continuing fall in average earnings shows that inflationary pressures, whatever the long-term risks, are not a short-term concern. The earnings figures, which show much higher wage increases in the public sector, demonstrate that private businesses and workers are making most of the sacrifices during this downturn.”
"In spite of the welcome figures published today, many risks persist, and the key policy priority is to avoid a double dip recession. The MPC must persevere with, and extend, the Quantitative Easing programme."