mpc.theyserveforyou.com

mpc: 6

IV

The labour market

A26 LFS employment had increased by 60,000 (0.2%) in the three months to November, compared with the previous three months. This was considerably slower growth than in the three months to August, but much the same as in the three months to October. The increase had been more than accounted for by a 101,000 (0.5%) rise in full-time employment; part-time employment had fallen by 42,000 (0.6%), so employment growth in full-time equivalent terms had been faster than in heads. The total number of hours worked had fallen by 0.1% in the three months to November, largely reflecting a fall of 0.4% in average hours worked per person. A27 Turning to survey data, the CIPS manufacturing survey for January had suggested that there had been a further decline in manufacturing employment. The same survey had suggested that construction employment had expanded at a more rapid rate than in December, while services employment growth had stabilised. Forward-looking surveys by the BCC and CBI had suggested an upturn in manufacturing employment intentions in 1999 Q4, although the CBI balance had remained negative. A28 New vacancies notified to Jobcentres had risen slightly in December, to 237,800. The CBI industrial trends survey had reported a sharp increase in skill shortages in 1999 Q4, while the net balance of manufacturers reporting shortages of unskilled labour had fallen back towards its historical average. The BCC had reported a slight rise in recruitment difficulties in manufacturing and services. The Recruitment and Employment Confederation (REC) survey had shown that there had been a further deterioration in the availability of agency staff. The latest reports by the Bank's regional Agents had suggested that skill shortages had persisted. A29 The latest unemployment statistics had shown a mixed picture. LFS unemployment had increased by 11,000 in the three months to November compared with three months earlier, though the rate had remained unchanged at 5.9%. But claimant count unemployment had fallen by 28,700 over the same period and by a further 21,900 in December. The claimant count rate had fallen by 0.1 percentage points to 4.0% in December. The rise in LFS unemployment had been among the very short term unemployed (up to six months) and the long term unemployed (over twelve months). A30 Labour market inactivity had fallen by 36,000 in the three months to November compared with the previous three months. This fall was more than accounted for by a decline in the number of people who reported that they did not want a job. The percentage of the working-age inactive wanting a job had increased by 0.6 percentage points to 30.3%.