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Workforce Jobs in Q3 had been revised, so that the number of jobs was estimated to have fallen by
just 1,000 during the third quarter, rather than 51,000 as reported in the previous release of the
Labour Market Statistics.
A31 Survey data had been consistent with further increases in employment in Q1. According to
the CIPS, the reading on construction sector employment was 60.8 in March, well above the neutral
50 level and the strongest figure since May 1997. Other CIPS surveys suggested a small rise in
service sector employment and a small fall in manufacturing employment in March.
A32 There had been a sharp increase in whole-economy productivity growth. One measure, based
on the change in the ratio of GDP to Workforce Jobs, had risen from 1.0% in the year to Q3 to 1.8%
in the year to Q4. Another measure, based on the change in the ratio of GDP to LFS employment,
had risen from 0.8% in the year to Q3 to 1.6% in the year to Q4. Survey data from the Institute of
Management Services confirmed the pick-up in productivity growth during the second half of 1999,
and suggested that productivity growth had remained firm during the first quarter of this year.
A33 There was little new information on labour shortages. The Recruitment and Employers'
Confederation (REC) survey showed a further reduction in the availability of both permanent and
temporary staff in March. According to reports from the Bank's regional Agents, skill shortages had
remained a serious concern, particularly in southern England.
A34 LFS unemployment had risen by 21,000 in the three months to January compared with the
previous three months. Most of the rise had been accounted for by those unemployed for less than
six months. The claimant count measure had fallen by 42,000 in the three months to January, and by
a further 6,700 in February. Inactivity had fallen by 68,000 in the three months to January compared
with the previous three months, reflecting similar reductions in the number who reported that they
wanted jobs and those who did not.
A35 There had been a further sharp increase in the headline rate of earnings growth for the whole
economy as measured by the Average Earnings Index (AEI), from 5.5% in December to 5.9% in
January. The January headline figure was an average of the annual rates for November, December
and January. These were 5.1%, 6.2% and 6.4% respectively.
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