Labour market figures reinforce case against raising interest rates
16/07/08 | 13:00
Commenting on the labour market figures released today, David Kern, Economic Adviser to the British Chambers of Commerce, said:
"Today's labour figures highlight the growing risks facing our economy. The number of people claiming unemployment benefits has increased for the last 5 months. However, the figures also show that a major downturn can still be avoided. The level of employment continues to rise and business remains resilient in spite of the growing threats.
"Significantly, the growth in earnings has slowed in recent months, both including and excluding bonuses. If wage pressures remain muted, calls for higher interest rates should be rejected and a cut in rates considered once inflation peaks and starts decreasing later in the year."
Ends
Media Contacts:
Fiona Cunningham
Tel: 020 7654 5812
Email: f.cunningham@britishchambers.org.uk
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Sam Turvey
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Email: s.turvey@britishchambers.org.uk
Notes to Editors:
The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.