Earnings & employment data - PwC chief economist comments
Published at 11:39 AM on 21 January 2015
Commenting on today's new earnings and employment data, John Hawksworth, PwC’s chief economist, said:
"For the first time since before the recession, clear blue water has opened up between average earnings growth of around 1.7-1.8% and the latest consumer price inflation rate of just 0.5%. Lower oil prices and a gradual pick-up in earnings growth seem likely to further boost real income growth over the next few months, bringing much needed relief to workers who, on average, have seen their real wages fall for the past six years.
"Employment also continued to rise but the increase of 37,000 relative to the previous quarter was the slowest rate of increase for 18 months. Unemployment fell to below 6%, but there too the rate of decrease in the number of people unemployed has slowed, while economic inactivity has picked up. This is consistent with other indications that the UK recovery slowed somewhat during the last part of 2014, reflecting problems in the Eurozone and increased geopolitical risk.
"But the boost to consumer spending power from lower oil prices could well bring a renewed boost to the UK growth rate in 2015 as it feeds through the economy."
Ends
Gill Carson
PwC | Media Relations Manager
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PricewaterhouseCoopers LLP
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