The Ever Improving UK Economy and It’s Effect On The Jobs Market
There have been widespread reports in the media this week that the UK economy will grow faster in 2014 than any other G7 economy, while low wage rises will ensure interest rates do not rise until next year.
UK GDP growth will hit 3.1% this year, spurred by strong capital investment by businesses, the EY Item Club said. Meanwhile rates will not rise until the first quarter of 2015, it predicted. “After several false starts, this time [the recovery] could be different,” said EY’s chief economist Mark Gregory. The Item Club raised its forecast for growth this year to 3.1% from 2.9% previously. This, it said, was due to an expected 12.5% jump in business investment, this compares with 2% GDP growth in Canada and 1.8% growth in Germany, the body forecast.
Official figures show that UK GDP rose by 0.8% in the first three months of the year, the fifth consecutive quarter of positive growth. This represents the longest positive run since the financial crisis. It also forecasts that the unemployment rate, currently running at 6.5%, will fall to 5.6% by the end of 2015. “Business investment is being ramped up, generating over half of the growth over the last year and helping to rebalance the economy away from consumption,” Mr Spencer said.
Elsewhere, Britain’s economy has finally passed its pre-2008 financial crisis peak, figures released this week are expected to show. GDP dropped more than 7pc from a high of £392bn to less than £365bn in Q3 of 2009, and it has struggled to reach that level ever since. But estimates due on Friday from the Office for National Statistics are predicted to show that in the second quarter of 2014 it expanded beyond the pre-crisis peak, rising to just more than £393bn.
The monthly REC Report on Jobs has been reporting for a number of months now that candidate availability continues to be a major challenge for the UK job market with pronounced skills shortages apparent within a number of sectors. It will be interesting to see if more positive economic news and the subsequent job security that creates, will tempt many new individuals to the job market. For details of all our current vacancies please visit our website at www.intropersonnel.co.uk/jobs/
For full details of all our current vacancies, visit our website at www.intropersonnel.co.uk/jobs/
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