Commenting on the labour market figures published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The welcome fall in unemployment raises hopes that next week’s GDP figures will confirm that the recession is over. But, the labour market figures also show that there was a fall in employment, and more significantly, the level of economically inactive people has increased.
“The gap between public and private sector wages has widened, reinforcing the need for a freeze in the total public sector pay bill as a key measure in battling the UK’s unsustainable budget deficit. We cannot have a situation where public sector wages are outstripping those in the private sector.
“With wages overall increasing much slower than prices, there is clearly no need to tighten monetary policy in the near-term.”