The strong trend in the labour market raises questions about the accuracy of GDP figures which are still showing three consecutive declines over the period to the second quarter of 2012.
Despite the positive job figures there are still some areas of concern, particularly the further increases in the number of people that have been unemployed for more than a year, and for more than two years.
The government must build on the positive job figures, with measures to help businesses grow and create jobs. An effective growth strategy should include further deregulation, increased infrastructure spending, and rapid implementation of the decision to create a business bank. If the trend in employment is reversed, the government should not hesitate to reduce employer National Insurance contributions to improve businesses ability to take on staff.
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