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mpc: 25 The news over the past month did not suggest that there had been any dramatic change in labour market conditions. Both employment and unemployment had increased in the three months to February, compared with the previous three months, as inactivity had fallen. Average weekly hours had continued to increase, rising 0.5% on the quarter, although some of this might have been erratic. The CIPS surveys suggested that demand for labour was picking up in services, but falling in manufacturing, consistent with the sectoral divergence reflected in output indicators. The Recruitment and Employment Confederation survey suggested that the availability of staff was decreasing less rapidly, while the Bank's regional Agents reported signs of diminishing difficulties in recruitment.

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