You'd think a recruitment consultant would be inherently cheerful at unemployment going down, wouldn't you?
It means people have found work, and that, presently, there is a shortage of staff which means increased demand for employment agencies. But, the economic data relating to wage growth and inflation takes the shine off the employment and unemployment rates. Inflation (especially travel inflation) is rising far quicker than wages are growing. In short, that means candidates are seeking larger increases to maintain (not necessarily improve) their standard of living, whilst employers are attempting to work to pay levels which give employees less spending power. And, when Supply doesn't match Demand, markets stall, job markets being no different.
According to the BBC, any change in the Bank of England base rate is still some way off, making for a gloomy outlook. Interest rates have been at historically low levels for years on end to stimulate borrowing/spending and to discourage saving - such a decision being taken after a financial crash which occurred owing to... too much debt.
You don't have to be a monetarist to know low interest rates will cause inflation, and even a basic understanding of Economics garnered from your preferred TV news correspondent will tell you any change in economic policy will take 18 months to work its way into the economy in full.
Let that sink in for a moment, even if the Bank of England changed interest rates to a better (higher) level tomorrow, it would be 18 months before that properly impacted on current inflation levels. And that's before factoring in the inevitable fall-out from the economic homeopathy that is Quantitative Easing...
My advice? You're more likely to find your dream role now whilst there's a shortage of candidates, and you're most likely to enjoy a raise when switching roles.
Why not drop me a line for a confidential chat about the market and your career, or if you're struggling to find suitable candidates for your firm, I'd love to make the current job market work for you.
Excluding bonuses, earnings rose by 2.0% year-on-year. However, inflation had hit an almost four-year high of 2.9% in May. When the impact of inflation is factored in, real weekly wages fell by 0.5% compared with a year earlier.