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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