BCC: Positive Labour Market Figures Still Mask Worrying Trends

Commenting on the labour market figures published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

"The welcome fall in unemployment raises hopes that next week's GDP figures will confirm that the recession is over. But, the labour market figures also show that there was a fall in employment, and more significantly, the level of economically inactive people has increased.

"The gap between public and private sector wages has widened, reinforcing the need for a freeze in the total public sector pay bill as a key measure in battling the UK's unsustainable budget deficit. We cannot have a situation where public sector wages are outstripping those in the private sector.

"With wages overall increasing much slower than prices, there is clearly no need to tighten monetary policy in the near-term.

For further information please contact the BCC press office on 020 7654 5813 or 07825 746812.

ONS - http://www.statistics.gov.uk/cci/nugget.asp?ID=12

New research from the British Chambers of Commerce reveals that upcoming employment regulations and taxes will cost UK businesses a staggering £25.6 billion over the next four years, which could adversely impact on future job creation.

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people. For more information visit: www.britishchambers.org.uk