Wage growth has risen by more than inflation for the first time since 2010 and employment has grown by the largest amount for 24 years, according to figures released by the ONS today.
Given this context its worth taking a look at the performance of Britain’s labour market since the 2008 financial crisis.
1. Despite lacklustre GDP growth employment has been steadily increasing since 2010. Read more
By Paul Hodges
The toy industry is going through difficult times as Lex highlighted recently. Profits at Toys R Us have halved since 2009, whilst Mattel is suffering due to poor sales of Barbie dolls. A dismal Christmas at the UK’s Mothercare led the departure of its chief executive. Read more
The New York Times asked yesterday whether Americans with a car in the driveway, a flat-screen television and a computer with an Internet connection can be described as “poor”.
In the United States, material goods – televisions, computers and cars – are at their most affordable in ten years, all having steadily dropped in price since 2005.
However, the cost of items that have traditionally helped pull Americans out of poverty – education, childcare and healthcare – have become far more expensive. Families’ everyday expenses also remain under strain from a steady increase in the cost of food and little change in the price of housing.
What would the same analysis of the cost of living look like in the UK?
We created a UK version of the chart in the New York Times’ story, using real prices calculated from the British consumer price index. The story was pretty similar:
The recovery in the world’s leading economies is strengthening, according to the Tracking Indices for the Global Economic Recovery, the Brookings Institution-Financial Times index of the global economy.
Explore the index with this interactive graphic. You can read more analysis from Eswar Prasad, Karim Foda, and Arnav Sahu on the Money Supply blog.
The March 19 Budget will be delivered against a background of broad economic positivity, but that tone may not sit well with everyone. Since George Osborne’s speech this time last year, fortunes have been mixed: the labour market has been slow to pick up in the East Midlands, the north has been hit by job closures and production of transport equipment has fallen.
Elena is a 26 year old Italian woman with a degree in child psychology who has been working in London as a nursery teacher for nearly a year. She moved to the UK after months spent looking in vain for a job in Tuscany, a region where the unemployment rate, at 7.9%, is well below the Italian average of 11.3%.
But Elena is not counted among more than 16,000 Italians that moved to the UK, according to official statistics updated for the FT by the Italian Ministry of Interior. These numbers are based on the registry of Italians living abroad (AIRE). Elena has a vague knowledge of this register but decided not to sign up for fear of losing important rights and services (including healthcare) in her home country. Read more