This month’s economic indicators reveal a mixed picture. Employment has seen a decrease of nearly a full percentage point over the past year, accompanied by an unexpected rise in unemployment. Additionally, the rate of ‘economic inactivity,’ encompassing individuals not seeking or available for work, has reached its highest level since 2015, surpassing even the levels seen during the pandemic. It’s worth noting that the reliability of the Labour Force Survey is challenged by declining response rates, which adds a layer of uncertainty to the data. However, even when considering short-term fluctuations, the overarching trend suggests stagnant or declining employment alongside a notable increase in economic inactivity. These developments hint at the possibility that a sluggish labor market may be exerting a more significant influence on growth compared to the impact of weak economic expansion on the labor market. Click here for more.
