Responding to the latest labour market statistics, Graeme Leach, Chief Economist at the Institute of Directors, said:
These figures raise half a cheer for the economy. Both headline unemployment measures are down, which is obviously good news, but there’s bad news in the average earnings figures. Average earnings growth including bonuses has collapsed from 1.3 per cent to just 0.1 per cent.
Excluding bonuses, average earnings growth stands at 2 per cent, which is way behind inflation. This means the real squeeze in household incomes continues to act as a dragging anchor on consumption and high street spending.
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