mpc: 16 The Labour Force Survey (LFS) measure of employment had fallen by 0.2% in 2005 Q4, the
weakest quarterly growth rate since 1993, while the LFS unemployment rate had risen sharply to 5.1%.
There was significant sampling variability and it was sensible not to place too much weight on the
sharpness of the movements over the quarter. It was possible that the weakness of employment had
reflected unwinding of labour hoarding that may have occurred earlier in 2005. Moreover, there were
signs that the weakening of the labour market that had been evident over the past few mo nths might
prove temporary. In January, claimant count unemployment had fallen for the first time in a year and
recent business surveys had pointed to whole economy employment growth being close to its historical
average in Q1. The Bank's regional Agents had conducted a special survey which suggested that
numbers employed had fallen over the previous six months, but anticipated a recovery over the next
six months. The Agents' survey suggested that particularly strong growth was expected in business
services, and that seemed to fit the pattern of output growth seen in the business surveys.
Make a comment: