VIDEO: Employment trends January 2014
At first glance January’s employment figures look very encouraging: since the last quarter, 167,000 less people are unemployed and inflation is down. Unfortunately, earnings continue to rise at a slower rate than inflation which means that despite rising employment, the cost of living crisis is yet to be resolved. Worryingly, some see increasing employment levels as a green light to demand that interest rates go up. However, the combination of falling real wages and higher mortgage payments would push many families over the edge, make it harder for small businesses to get finance and stop the employment recovery in its tracks.