Articles - Huge surge in UK employment

 Azad Zangana, European Economist, comments on today’s UK employment data from the ONS:

 “Latest data from the ONS shows a huge surge in employment and sharp fall in the unemployment rate. This news comes as a shock as GDP output has continued to lag the recovery in the labour market. Of the 250,000 net new entrants into employment, 155,000 were in full-time employment, 95,000 in part-time employment. Of those, 80,000 were self-employed, which reverses the decline over the past year.

 “Based on quarterly data to September, the private sector added 246,000 jobs, while the public sector added a mere 4,000 jobs – re-enforcing our long-standing belief that the private sector is more than capable of absorbing public sector job losses.

 “The boost in employment should continue to drive the economy into 2014. The only thing missing from the Chancellor’s wish list is a rise in real wages. The fall in the unemployment rate will also put the Bank of England under pressure, as it has promised to consider raising interest rates when the unemployment rate falls to its 7% threshold. This is clearly coming sooner than expected, and is now being reflected by markets."