Category: Labour markets

The UK’s flexible labour market needs to be allowed to do its job

The Treasury is right to begin to wind down the furlough scheme – and not a moment too soon. The UK economy is springing back to life and the labour market is not far behind. It will take a while for this to be confirmed in the official data. We still only have the headline … Continue reading The UK’s flexible labour market needs to be allowed to do its job

Ignore the gloomsters, the economy is roaring back

The horror! Yesterday we discovered that UK economic output — as measured by GDP — fell by 1.6 per cent in the first quarter of the year, 0.1 per cent worse than the 1.5 per cent originally reported. This is practically a rounding error. To put it in context, as recently as March the Office for Budget Responsibility, … Continue reading Ignore the gloomsters, the economy is roaring back

How much should we worry about inflation?

Many people have written about how the ‘spectre of inflation’ has returned to haunt investors. In fact, the financial markets are still remarkably sanguine, reassured by dovish comments from central banks. This was reasonable in the depths of the Covid recession. Now it looks increasingly complacent. There has already been a sharp rise in government … Continue reading How much should we worry about inflation?