Overview of the labour market [January 2001]

The most recent labour market data indicates continued employment growth. The number of unfilled vacancies appears to be rising apace indicating that as the number of unemployed continues to fall, employers are finding it increasingly difficult to recruit staff. The rise in the level of those economically active (and a corresponding fall in economic inactivity) is reassuring. This suggests that both government policy and opportunity has spurred people into the labour market who othewise might not have taken part. Rising wage levels and further vacancy information will indicate whether this injection into the labour market is sufficient to prevent any labour shortages, thus enabling the current
run of growth to continue.