British Chamber of Commerce welcome job market figures

The latest job market figures are encouraging, and act as a welcome contrast to recent pessimism about the UK economy. Employment is up, unemployment is down, and the rate of inactivity is at its lowest since 1991.

But there are still areas of concern. Youth unemployment is unacceptably high, and too many people are still being forced to work part-time as they cannot find a full-time job. While unemployment is likely to increase over the next 12-18 months, the peak may now be lower than the 2.9m figure we predicted in our last forecast.

It is clear is that growth in the UK economy is still too weak. Problems in the eurozone and tough austerity measures will continue to exert downward pressures on domestic demand. The government must build on these positive job figures by considering policies that help businesses deliver growth.