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07 December 2017

Young workers aren’t working

By David Armstrong What to do about young people not in education, training or employment As a father of three children who will all soon be young adults, the idea that they’ll do nothing productive fills me with fear and dread, but the statistics say that may happen. The official...

24 November 2017

Chancellor walks a narrow tightrope between fiscal prudence and easing austerity

By John Hawksworth UK economic growth has slowed this year and this more sluggish performance is now projected to continue for some years to come as productivity growth remains disappointing. This has worsened the medium term public finance outlook and reduced the wriggle room available to the Chancellor. He therefore...

20 November 2017

We need a Budget to boost flagging productivity growth

By Andrew Sentance, Senior Economic Adviser, PwC The Chancellor has not been short of advice about his Autumn Budget. More money is being requested for the health service, education, benefits, public sector pay and housing. Many of his Cabinet colleagues have pitched into the debate – including the Prime Minister...

14 November 2017

UK economic prospects, the productivity challenge and migration after Brexit

By John Hawksworth Global growth has picked up to over 3% this year, but UK economic growth has slowed to around 1.5% due in particular to the squeeze on consumer spending power from higher inflation. UK business investment growth has also been slower than might have been expected given the...

12 October 2017

Preparing for an age of automation: how policymakers can support young workers to succeed

By Hannah Audino and George Mason Across the UK, young people aged 16 to 24 are almost four times more likely to be unemployed than adults. Despite falls in youth unemployment in recent years as the economy has recovered from the financial crisis, challenges around social mobility, a lack of...

11 September 2017

UK makes good progress on fuller working lives – but still scope to improve further

By John Hawksworth New data released by the DWP on 7th September showed that the UK has made good progress on extending working lives, particularly for women. Twenty years ago, the average age at which women exited the workforce was around 60 – now it is 63. The gradual rise...

03 August 2017

Why has the Phillips Curve gone flat?

By John Hawksworth and Jamie Durham Traditional economic theory would suggest that low unemployment will be associated with relatively high wage inflation - and vice versa - as described in the ‘Phillips Curve’ (named after the economist who first identified this relationship in the 1960s). However, the unemployment rate in...

31 July 2017

What can machine learning add to economics?

By Hugh Dance and John Hawksworth Machine learning and artificial intelligence (AI) are some of the hottest topics around today. On the one hand, AI promises great benefits for productivity and the economy, on the other hand it could also displace some existing jobs at the same time as it...

24 July 2017

House prices remain below pre-recession levels across a quarter of the UK

By Richard Snook The general perception of a UK wide affordability crisis masks huge differences in house price performance between regions. In a recent analysis of sub-regional data, we find that in a quarter of local authorities across the UK, house prices remain below the pre-recession peak achieved ten years...

18 July 2017

Building 250,000 homes a year may only knock £5,000 off the average house price

By Richard Snook It is no secret that the UK’s housing market is becoming increasingly unaffordable. The chronic undersupply of housing over the past few decades, coupled with increasing demand, has seen house price growth far exceed the rate of earnings growth. This has been felt the hardest in London,...